What is TDS entry posted in ledger?
In the case of NRO accounts (Non-PIS), Geojit is responsible for the calculation, deduction, and remittance of taxes and the issuance of the 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.
Please note that accurate trading data is required for calculating your P/L and TDS. The buy and sell quantities should be properly matched. In cases involving off-market transfers, old IPOs, rights issues, demergers, or similar transactions, the available purchase quantity or cost may not reflect the actual purchase rate. In such cases, the TDS calculation may be based on the full sale proceeds as per the applicable process. If you have any such transactions or shares brought into Geojit, please get in touch with your branch to have the relevant details updated in our records. You can also access the quantity analysis report in MyGeojit, which is a ready reckoner to get this information as a single report
NOTE: For NRE-PIS account holders Calculation, Deduction, Remittance of TDS and issuance of a TDS Certificate is done by PIS Bank. As part of the TDS calculation, 20% of the sales proceeds will be shown as blocked in the buying power for NRO accounts on T and T+1 day
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