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  • Ministry of Finance, Government of India has imposed the provision of Long Term Capital Gain Tax (LTCG) of 10% in Union Budget 2018 and is effective from April 1, 2018.
  • Profits or gains arising from transfer of capital assets are called "capital gains".
  • Hence the payout to sale of securities by ICICIdirect will be in accordance to applicability of LTCG and STCG tax structure.
  • Long Term Capital Gains refers to gains arising out of sale/transfer of financial assets held for more than 1 year and securities held for less than 1 year are subject to STCG
  • Below are the TDS rates as on 1st April 2019

Equity Long Term

11.96%

Total TDS

10%

Base TDS rate

1.5%

Surcharge

0.46%

Edu. Cess

Equity Short Term

17.94%

Total TDS

15%

Base TDS rate

2.25%

Surcharge

0.69%

Edu. Cess

Futures & Options

42.74%

Total TDS

30%

Base TDS rate

11.1%

Surcharge

1.64%

Edu. Cess

Long Term - ETF/Bonds/NCD/Pref. shares

28.5%

Total TDS

20%

Base TDS rate

7.4%

Surcharge

1.1%

Edu. Cess

Short Term - ETF/Bonds/NCD/Pref. shares

42.74%

Total TDS

30%

Base TDS rate

11.1%

Surcharge

1.64%

Edu. Cess

How is LTCG calculated?

  • LTCG
  • =
  • Sale price of the asset
  • -
  • Cost of Acquisition of asset

(The long-term capital gains will be computed by deducting the cost of acquisition from the full value of consideration on transfer of the long-term capital asset.)

The cost of acquisitions in respect of the long term capital asset acquired by the assesse before the 1st day of February, 2018, shall be deemed to be the higher of:

  • the actual cost of acquisition of the asset
  • OR
  • the lower of
    • The fair market value of this asset (highest price of share on stock exchange on Jan 31, 2018 or when share was last traded. NAV of unit in case of a mutual fund unit and
    • The sale value received/accrued as a result of the transfer of the capital asset

To Know how LTCG Tax is calculated

Click Here

Frequently Asked Questions

Yes, losses can be offset against profit, there can be four possible scenarios, Click here for more details.

If Bonus shares are credited after January 31, 2018, then Cost of Acquisition will be considered as ZERO. If Bonus shares are held as on January 31, 2018 then Cost of Acquisition will be considered at Fair Market Value (FMV)

TDS settlement is done when shares are purchased and sold from PINS A/c in normal T+2 days.

TDS Calculation from NON-PINS Account

No Action required if

  • The shares being sold were purchased from your ICICIdirect account when your status was Resident Indian. In this scenario, the details required for TDS calculations will be available with ICICIdirect. The appropriate LTCG or STCG will be deducted and pay-out will be credited in your bank account in T+2 days. There is no actionable required from your end. You may accept and proceed to sell the shares.
  • The shares being sold are bonus shares transferred from your ICICIdirect PINS to NON PINS account.
  • The shares being sold were purchased under IPO through ICICIdirect.

Documentary proof required if

If the shares being sold were transferred from another DP, for example:

(shares received as a gift from a Resident Indian or your entire portfolio was migrated from another DP. In such a case the details required for calculating TDS will not be available with ICICIdirect.)

You will be required to furnish below documentary proof and send a soft copy to nri@icicidirect.com

  • Demat holding statement of the DP from where the shares have been transferred to your ICICI Bank DP. This is to ascertain the period of holding to apply LTCG or STCG. The demat statement should also have the repatriation proof details for cases where pay-out is to be given in NRE account.
  • Cost of acquisition (COA) details of the shares being sold like contract notes. If the COA details are not available with you, ICICIdirect can consider Fair Market Value (FMV) as on Jan 31, 2018 given that shares were purchased prior to that period and documentary proof of period of holding is submitted.