What is TDS entry posted in ledger?
In case of NRO accounts (Non-PIS), Geojit is responsible for Calculation, Deduction, and Remittance of Taxes and Issuance of Tax Deducted at Source(TDS) Certificate. When trading in the stock markets, long-term and short-term capital gains are applicable.
For NRO accounts, they are as follows:
Short-Term Capital Gains (STCG)
STCG of 20% on profits made (assets transferred on or after 23rd July 2024 onwards) is applicable on stocks sold within 365 days. When shares are sold from an NRO account, Geojit passes a TDS entry on the ledger at the end of the day at 20% + CESS.
Example
- Bought 100 shares at Rs. 500 on 10.01.2023
- Sold 50 shares at Rs. 600 on 20.02.2023
- On selling these shares, 600-500 = 100; 100 * 50 = 5000; 20% of 5000 = Rs. 1000 will be debited from the ledger.
- If there is a loss when the shares are sold, TDS will not be deducted.
Long-Term Capital Gains (LTCG)
On profits above Rs. 1,25,000, an LTCG of 12.5% + CESS (assets transferred on or after 23rd July 2024 onwards) is applicable if the shares are held for more than 365 days. Geojit cannot provide an exemption as NRIs can have multiple capital gains through mutual funds, accounts with other brokers, etc. So, 12.5% TDS is deducted in LTCG gains also.
If an NRI does not accrue any LTCG, TDS can be claimed while filling out tax returns. Contact a tax practitioner for tax-specific queries.
NOTE: For NRE-PIS account holders Calculation, Deduction, Remittance of TDS and issuance of a TDS Certificate is done by PIS Bank.Still need help? Create Ticket
