NRI Taxation


How does tax on NRI transactions work?

There is no difference in the % of tax that needs to be on Capital Gains by a Resident and a Non Resident. Same rates apply for both categories. However, tax arising out of capital gains in a NRI Equity Cash account needs to be paid upfront unlike Resident accounts. Therefore, the taxes, if any, on NRI account are deducted at source which is called the TDS. 

Who deducts tax on my NRE Equity Cash transactions?

The bank with which you hold your PIS account deducts the tax at source. Navia reports every transaction (secondary market buy or sell) to your bank and the bank registers them in their records. Each time a sale is executed, the bank refers back to its records to identify the date of purchase, rate of purchase and accordingly calculate tax. This tax will be deducted from the sales proceeds and only the net amount will be deposited to your PIS Bank account. If, the purchase details are not available the funds will not be deposited to your account and you will be informed about it with a request to share the purchase details.


Who deducts tax on my NRO Equity Cash transactions?

NRO transactions are not reported to bank to be routed through a PIS Bank account as this is not a requirement anymore according to RBI. However, the tax on sale, if any, will be computed by Navia on best effort basis.

Whenever, a sale is executed, Navia, on a best effort basis, tries to identify the purchase detail and compute the tax if any. The tax thus arrived will be deducted from your trading ledger and will be remitted to Income Tax department on a periodical basis.

Who deducts tax on my F&O transactions ?

No TDS will be deducted on F&O gains. You will be required to identify and pay the required tax. 

Who will file returns on my account?

You will receive the details of tax deducted at source on a periodical/ annual basis. You may use these details and file returns in India within the cut off time prescribed for it. Navia also provides the service of filing returns with the help of an external Auditor. You may also choose to file it through us for a nominal cost. You may just email us to avail this service and attach all your financial details to initiate the process.

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