Late TDS deduction by FYERS at 39%

Trading
1

Hi Folks,

I have a NRO non-pis FnO account with fyers .

Fyers deducted TDS for FY25 in Sep 2026 at 39% instead of 31.5%.

Broker is not showing any accountability for lapses in TDS and not answering queries about why 39% when TDS rate be 31-32%.

What are my options to report lack of accountability and regulatory lapses by the broker ?

Thanks.

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Sebi scores

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AI reply:

Why 39% can happen

If the underlying F&O income is treated as business income, the basic rate is 30%.

Then:

  • Basic tax: 30%

  • 25% surcharge: 7.5%

  • Subtotal: 37.5%

  • 4% cess on that: 1.5%

  • Effective rate = 39%

So mathematically:

30% × 1.25 × 1.04 = 39%

By contrast, 31.2% = 30% + 4% cess, i.e. assuming no surcharge.

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Surcharge will be applicable if the total income > 50 lakhs

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@anirudh_kp tweet and tag tejas khoday, he reads most of the tweets

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@Quicko might help.

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Thanks, Surcharge does not apply in my case.