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What is the tax liability for an investor under PIS and non-PIS account?

April 26, 2017account investor liability non-pis PIs tax

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What is the tax liability for an investor under PIS and non-PIS account?

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ANS: On PIS there is short term capital gain tax @ 15% + surcharge + education cess. On long term capital gain there is no tax. On normal NRE account, no tax liabilities. On NRO account, tax applicable on interest earned. Tax rates depend on the country of residence of the customer. Bank is calculating taxes according to FIFO method irrespective of the broker from whom he has purchased or sold the shares. NRE / NRO clients have to compulsorily trade on delivery basis only. Day trading is not allowed as of now.