How are funds in NRI accounts settled after the sale of securities?

When an NRI investor sells securities through Share India, the proceeds from the sale are first credited to their Share India trading account. The subsequent transfer of these funds depends on the type of NRI account held:

• For NRE (Non-Resident External) accounts: The sale proceeds are directly transferred from the trading account to the NRE bank account. This process is straightforward, as the funds are fully repatriable.

• For NRO (Non-Resident Ordinary) accounts: The proceeds are transferred after deducting the applicable Tax Deducted at Source (TDS), as per Indian tax regulations. Share India withholds this tax on behalf of the government before transferring the remaining funds to the NRO bank account.

Thus, while both account types receive the sale proceeds, NRO accounts are subject to TDS deductions, whereas NRE accounts are not. Understanding this distinction helps NRIs manage their post-sale fund settlements and taxation more effectively.