Dubai, Jan 30: An NRI body has appealed to Prime Minister Manmohan Singh to simplify the procedure to invest in Indian bourses.
The body has asked for permitting brokers to deduct short term taxes at source which is now manadatorily done by the banks with which they keep trading account. In a letter to Dr Singh, the Pravasi Bandhu Welfare Trust pointed out that the broker has the access to the holding in the depository account, so they know the duration of the holding of shares to decide the short term capital gain.
The bank account details are available with depository account to which broker has to credit the sale proceeds.
Trust Chairman KV Shamsudheen said in the case of Mutual Funds the Asset Management Companies (AMC) are already directly crediting the redemption proceeds to investors' account after deducting the short term capital gain tax, if any.
''It is possible because the AMCs are aware the source of the investment and the period of holding of the Mutual Fund investment amount. Similarly, brokers also act the same roll of AMCs in the share transaction, it will eliminate lot of time constraint and streamline the system,'' the letter read.
He said if the procedure is followed and thus simplified, the stock investment by expats can get a boost.