NRI - TDS rates - can someone explain please

Taxation
1

Need clarity as to how TDS is charged for NRI when selling equity. Tried to do a search on the subject but was not successful.

Kotak Securities in their website advise

  1. Duration the shares were held and gains made. If the duration is more than 12 months no TDS IS deducted.
  2. Icici Direct - charges TDS irrespective of the period and on the gain made.

I am sure these are income tax rules and cannot be tinkered with by brokers. So please can someone advise as to what triggers TDS.

2

Hi @neha1101,
As per provisions of Section 5 of the Income Tax Act,1961, income received in India is chargeable to tax.
While trading in the markets, there is Capital Gains tax {STCG & LTCG} that are deducted. These are deducted on the ‘Profit made’

If you’re trading through the PIS route, this will be deducted by the bank where you hold the PIS account.

  • Long term capital gains: 10% on gains above Rs. 1lac. Any gain made on stocks held for more than 1 year is computed at 10% above the 1lac ceiling.

  • Short term capital gains: 15% on any gain made on stocks sold before 1 year.

This computation is done by the bank where you hold the PIS account, it’d best if you check with them. Please reach out to your bank Relationship Manager {RM} who can assist you.

It is recommended that you consult a tax expert who will help you based on the nature and quantum of your income earned in India, will calculate your tax liability.

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