What is the impact on trading limit on execution of any sale transaction? What is the methodology of computing TDS on sale transactions?
Your trading limit would go up by the value of sale transaction net of the amount temporarily withheld on account of TDS. Tax would be withheld for Non Resident Individuals at the applicable Tax rates (along with applicable Surcharge and Cess, if any as per prevailing Tax laws). Currently, an amount equivalent to 15.45 % of the sale transaction is withheld against the actual TDS to be computed. At the end of the day, the actual TDS will be computed considering the cost of acquisition and the period of holding (short term or long term). Also Brokerage, Service Tax ,Stamp Duty, Transaction Charges and SEBI Turnover Charges and other charges as applicable are deducted from sale transaction value while computing actual TDS as these charges are considered as the cost of transaction. TDS so calculated will be compared with the amount withheld there against at the time of execution of the sale transaction. Any excess amount so withheld will be added back in your limits before the start of nex
