For nri is it possible to ask for TDS refund on share profits if his Indian income is below taxable limit?



I am an nri. I invest in share markets. TDS is deduted at source on the profits earned if the investment is for less than an year. Is it possible to ask for a refund if my total indian income during that financial year is below the taxable income.

For nri is it possible to ask for TDS refund on share profits if his Indian income is below taxable limit?
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3 Replies to “For nri is it possible to ask for TDS refund on share profits if his Indian income is below taxable limit?”

  1. No,it is not possible to refund the TDS for the short term capital gains(profits made in a period less than a year) in india.
    the best way to avoid taxes or rather to get the tax benefits is to invest in Mutual funds, not in direct equity(in that case its better not to disclose your NRI status)


  2. You can claim for refund of the TDS, provised you file an assessment and claim for refund (If the tax due is less than the TDS amount)

    http://www.nritaxservices.com/tax_rtns.htm

    Mr.Rapa in his answer advised you to invest in mutual funds insted of direct in shares. But the mutual funds also deduct TDS on maturity for NRIs.

    Will TDS be deducted on the redemption of mutual fund units?

    In case of NRI’s, TDS will be deducted on the sale proceeds. The TDS will deducted depending upon whether it is a short-term capital gain or long term capital gains. For more details, please refer to the tax queries section on our site (Link to tax queries)

    Do not hide your NRI status. The tax people are sending notice to all the investors (Resident) who has invested Rs.2 lakhs and above in mutual funds.

    http://www.timesofmoney.com/mf/jsp/mf_faq.jsp?faq=transactions&uiId=TomMf


  3. Of course it is possible. No tax is payable if your total income in India including everything is below the threshold limit of Rs. 1,10,000 for 2007-2008. For ladies the limit is Rs. 1.45 lakhs and for Senior Citizens, it is Rs. 1.95 lakhs. You can file a return and claim refunds. They will arrive in due course.





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