Capital Gains Tax for NRIs: Key Differences from Resident Indians

1. Tax Rates: Both NRIs and residents are subject to the same capital gains tax rates, which are classified into short-term and long-term capital gains. The applicable tax rates are deducted accordingly.

2. Payment Timing:

• NRIs: Taxes on capital gains are deducted at the source at the time of the transaction, meaning NRIs must pay taxes upfront.
• Residents: Taxes are paid when filing annual tax returns, giving residents more flexibility in payment timing.

3. TDS (Tax Deducted at Source):

• NRO Transactions: Navia offers a specialized service of deducting taxes at the source at zero cost. This ensures that NRIs meet their tax obligations without additional charges.
• NRE Transactions: The bank where the PIS (Portfolio Investment Scheme) account is held deducts the applicable taxes at a nominal rate.