Effective margin amount will be : Margin based on leverage + Margin required for TDS
Margin required for TDS will be 1% of total order value while opening and closing the position.
This implies that effective margin can increase by upto 20% to account for TDS. Let's take an example of 10x leverage of 10,000 USDT Margin order:
Before July 01, 2022 |
After July 01, 2022 |
Margin required : 1000 USDT (approx) |
Margin required : 1000 USDT (approx) |
TDS Margin required : 0 |
TDS Margin required : 200 USDT (approx) 100 USDT for opening position (approx) 100 USDT for closing position (approx) |
Effective margin : 1000 USDT (approx) |
Effective margin required: 1200 USDT (approx) Out of which 200 USDT will be deposited to the Income Tax department as part of TDS regulations. This is not a loss and can be claimed back. |