FEMA has been amended however Section 195 of Income Tax Act has not been amended and it requires deduction and deposit of withholding tax. Traditionally, banks through NRO PIS Bank Account were computing, deducting and depositing withholding tax liability.

Majority of the PIS Banker does not want to lose PIS Account Charges revenue and also as solution to above problem of deduction and deposit of withholding tax, has agreed to continue to provide the same service at same cost in NRO Saving Account.

Your banker will generate Internal Reference Number (similar to erstwhile PIS number received from RBI) and insert in the software so your NRO Saving Bank Account will behave as if this is NRO PIS Account.

Now ProStocks offer NRO NON-PIS Trading and Demat Account and your account will be subject to withholding tax requirement

Rate of TDS for Non Resident.