What is meant by Declaration for NRE/NRO Clients?

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When Indian shares are sold, capital gains tax may be applicable. To ensure the correct calculation of Tax Deducted at Source (TDS), Geojit may require NRE/NRO clients to submit a declaration regarding the cost of acquisition of shares.

For NRE PIS accounts, the respective bank manages and deducts TDS. For NRO accounts, Geojit manages the TDS deduction process. A declaration is required when shares are acquired other than through a regular purchase transaction in Geojit, including the following scenarios:

• Transfer of shares from another broker to Geojit
• Migration of a Demat account from Resident Indian status to NRI status following a change in residency
• Corporate actions other than bonus issues and stock splits (e.g., merger, demerger, rights issue)
• Shares acquired through IPOs using a DP other than Geojit
  
  

Please note: Without the required declaration, such shares may not be reflected in your Flip holdings. However, they will continue to appear in your Demat statements until the declaration is submitted and processed. This declaration helps ensure the accurate computation of capital gains and applicable TDS at the time of sale.