What is TDS, and How Is It Applied on NRI Non-PIS Accounts at FYERS?

What is TDS, and How Is It Applied on NRI Non-PIS Accounts at FYERS?

Tax Deducted at Source (TDS) is applied to NRI Non-PIS trading accounts at FYERS as per the Income Tax Act, 1961 and Foreign Exchange Management Act (FEMA). Whenever an NRI earns taxable income such as capital gains or dividends from investments in India, FYERS is required to deduct applicable tax before crediting sale proceeds or payouts.

  • Section 195, Income Tax Act, 1961: Mandates deduction of tax at source from income payable to a non-resident, including capital gains.
  • FEMA guidelines: Require that sale proceeds to NRI bank accounts be credited net of applicable taxes, ensuring compliance with repatriation norms.

How FYERS Applies TDS on NRI Non-PIS Accounts

  1. Provisional blocking (T+0): Immediately after a sale, a provisional TDS amount based on trade value and indicative rate is temporarily blocked in your ledger.
  2. Final deduction (T+1): On the next working day, FYERS recalculates actual realised gains across your trades and applies the precise TDS. The provisional block is reversed and the final TDS entry is posted.

This ensures you are taxed on realised net gains, not on gross trade value.

Basis of TDS Calculation

  • TDS is computed on net realised capital gains after adjusting eligible losses.
  • Computation is done on a cumulative financial-year basis, not per trade.
  • Applicable exemptions or thresholds (for example, LTCG thresholds) are considered before final computation.

TDS Rates Applicable on Capital Gains

Capital gains typeHolding periodTDS rate (incl. cess & surcharge)Applicability
Short-Term (STCG)Less than 12 months23.92%On short-term gains from equity and non-equity instruments
Long-Term (LTCG)More than 12 months14.95%On long-term gains exceeding ₹1,25,000 in a financial year

Rates are indicative and subject to change based on law and notifications.

Other Taxable Income for NRIs

Income typeTax/TDS applicability
Capital gains (Equity & F&O)Taxed based on segment and holding period
DividendsSubject to TDS before credit
Interest on NRO accountTaxable in India
Interest on NRE accountGenerally exempt from tax in India
Rental incomeTaxable under Income from House Property
Business or other incomeTaxed as per applicable provisions
FYERS does not provide tax advice. For personalised guidance, including DTAA relief or lower withholding certificates, consult a qualified tax professional familiar with NRI taxation.

What If...

ScenarioWhat you should know
You see a TDS debit immediately after saleThis is a provisional block that adjusts on T+1 based on realised gains.
You made a loss but TDS entries appearThe T+0 block is reversed on T+1. Only net positive realised gains are taxed.
You were unaware that TDS was deductedCheck your FYERS ledger or contract note. TDS entries are recorded per settlement.
The TDS rate seems highRates apply as per law. Verify your holding period, asset type, and applicable surcharge.
You need a refund or creditDownload Form 16A from FYERS and claim TDS in your ITR or under DTAA, as applicable.
FYERS deducts and remits TDS for NRI Non-PIS accounts as per government rules. The amount is deposited under your PAN and appears in Form 26AS. You can claim credit or refunds while filing your Indian Income Tax Return.

Last updated: 04 Nov 2025