As per regulatory guidelines, Tax (if applicable) has to be deducted at source for all the profits done in the equity market transactions by NRIs. Before crediting sales proceeds it is the responsibility of the remitter to determine the appropriate Tax and deduct it at source.
What are the Rates applicable under TDS?
TDS rate is different as per the tenure of the investment. It can be classified into:

Equities:

• Long-term capital gain - If the period of holding is more than 1 year i.e. the difference between the date of purchase and sell is more than 1 year, then the TDS rate applicable is 0 %.
• Short-term capital gain - If the period of holding is less than 1 year i.e. the difference between the date of purchase and sell is less than 1 year, then the TDS rate applicable is 15.45%. on capital gain

Formula for TDS :

• Amount of gain= Selling price - Purchase price
• Duration of holding i.e. long term or short term = Selling date - Purchase date
• Source of fund for purchase i.e. NRE or NRO