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Tax on US Stocks and Global Investments
Capital gains, dividends, withholding, credits and disclosure — the full tax picture for an Indian investor holding US assets.
Start here.
How US stocks are taxed for Indian investors: LTCG and STCG rates, the 24-month holding period, dividend withholding, DTAA relief, TCS on LRS, Schedule FA and US estate tax.
Tax is where most of the confusion around US investing sits, and it is worth separating two questions that often get merged: what the United States takes, and what India takes.
For ordinary US shares and most ETFs, the United States does not tax an Indian resident's capital gains. It does withhold tax on dividends. India taxes both — capital gains at rates that depend on how long the holding was held, and dividends at your slab rate, with credit available for the tax already withheld in the US under the India–US Double Taxation Avoidance Agreement.
Alongside the tax itself sit two obligations people miss: TCS collected by your bank when money leaves India, which is a cashflow item rather than a cost because it is creditable against your tax liability; and Schedule FA disclosure, which applies to every overseas holding of a resident and ordinarily resident taxpayer, regardless of whether you made a profit.
Every article in this section states the rules with the date they take effect, because several changed recently and more change from FY 2026-27.
34 articles in this topic
In order of publication, newest first. An article can sit in more than one hub, so a piece here may appear under another subject too.
How to Buy SpaceX (SPCX) Shares from India (2026)
US StocksOctober 20264 min read
SpaceX trades on Nasdaq as SPCX, at US$159.31 a share on 21 October 2026. Indians buy it under LRS via a GIFT City app or overseas broker, not at the IPO price.
How to Buy Amazon Shares from India (2026)
US StocksOctober 20266 min read
Amazon (AMZN) is listed on Nasdaq, not NSE. Residents buy it under LRS via a GIFT City app or overseas broker: US$262.37 a share on 21 October 2026, about US$1.74 in app fees on US$500.
How to Buy Microsoft Shares from India (2026)
US StocksOctober 20264 min read
Microsoft (MSFT) is listed only on Nasdaq. Residents buy it under LRS via a GIFT City app or overseas broker: US$532.95 a share on 21 October 2026, with a US$0.98 quarterly dividend.
How to Buy Apple Shares from India (2026)
US StocksOctober 20267 min read
Apple (AAPL) is listed on Nasdaq, not in India. Residents buy it under LRS through a GIFT City app or overseas broker, in fractions from about US$1; AAPL closed at US$343.99 on 21 October 2026.
How to Buy Meta Shares from India (2026)
US StocksOctober 20266 min read
Meta (META) is listed on Nasdaq, not in India. Residents buy it under LRS through a GIFT City app or overseas broker; Meta has declared a one-time Class C stock dividend for January 2027.
NSE IFSC Receipts Are Closing: What Holders Must Do Before the January 2027 Deadlines
GIFT CityOctober 20266 min read
NSE IX is closing its NSE IFSC Receipts programme: sell by 29 January 2027 or convert whole-share lots into US shares by 20 January; dealing ends on 1 February 2027.
How to Buy Broadcom Shares from India (2026)
US StocksOctober 20265 min read
Broadcom (AVGO) is listed on Nasdaq, not in India. Residents buy it under LRS via a GIFT City app or overseas broker: price, dividend, a US$500 cost example, tax and risks.
How to Buy AMD Shares from India (2026)
US StocksOctober 20266 min read
AMD is listed on Nasdaq, not in India. Residents buy it under LRS via a GIFT City app or overseas broker, often in fractions: price, Q2 2026 results, a US$500 cost example, tax and risks.
How to Buy Google (Alphabet) Shares from India (2026)
US StocksOctober 20266 min read
Alphabet is listed on Nasdaq, not in India. Residents can buy GOOGL or GOOG under LRS via a GIFT City app or overseas broker; both classes get the same US$0.22 quarterly dividend.
How to Buy Tesla Shares from India (2026)
US StocksOctober 20266 min read
Tesla (TSLA) is listed on Nasdaq, not in India. Residents buy it under LRS through a GIFT City app or overseas broker, often in fractions from about US$1; Tesla pays no dividend.
Indian ADR List 2026: Indian Companies Listed in the US
US StocksOctober 20265 min read
Six Indian companies have US ADRs: Infosys, Wipro, HDFC Bank, ICICI Bank, Dr. Reddy’s and Sify. Ratios, ADR vs NSE prices, and why residents generally cannot hold them.
How to Claim TCS Credit in Your ITR (With Examples)
TaxationOctober 20266 min read
TCS on an LRS remittance is tax already paid. Claim it in Schedule TCS of the return for the year it was collected, or have your employer cut salary TDS.
US Semiconductor Stocks and ETFs: A Guide for Indian Investors (2026)
ETFsOctober 20267 min read
Indians can buy US chip stocks and ETFs such as SMH and SOXX under LRS. The value chain, fund weights, risks, a US$500 cost example and tax rules, as of October 2026.
Leveraged and Inverse ETFs: What Indian Investors Should Know (2026)
ETFsOctober 20265 min read
India has no leveraged or inverse ETFs. US funds such as TQQQ, SQQQ and SOXL exist, but whether residents may buy them under LRS is unsettled; daily resets can erode returns.
How to Transfer RSUs to India: Shares, Sale Proceeds and Tax (2026)
RSUsOctober 20266 min read
Vested RSU shares, held with a US plan broker, can’t go into an Indian demat account. Keep them, sell and wire dollars home, or move them in kind; idle dollars must be reinvested or repatriated within 180 days.
How to Invest in US Bonds and Treasury ETFs from India (2026)
US BondsOctober 20265 min read
Resident Indians cannot use TreasuryDirect; the practical route is a US-listed Treasury or bond ETF under LRS. October 2026 yields, US and Indian tax, a ₹10 lakh example and the risks.
US Dividend Stocks and ETFs: What Indian Investors Keep After Tax (2026)
DividendsOctober 20268 min read
After 25% US withholding and Indian tax, you keep 75% of a US dividend up to the 20% slab, 74% at 25% and 68.8% at 30%. Plus eight dividend ETFs, special cases and ITR reporting.
How to Buy Nvidia Shares from India (2026)
US StocksOctober 20267 min read
NVDA trades only on Nasdaq. Indians can buy it through a GIFT City app or an overseas broker under LRS, often in fractions from US$1; 20% TCS applies only above ₹10 lakh a year.
UCITS ETFs vs US-Listed ETFs: Which Is Better for Indian Investors?
ETFsOctober 20268 min read
Irish UCITS ETFs lose 15% of US dividends to US tax instead of 25% and generally avoid US estate tax; US-listed ETFs usually cost less. Indian capital gains tax is identical.
How to Invest in the Nasdaq-100 from India (2026)
ETFsOctober 20266 min read
Indian Nasdaq-100 funds are closed to new SIPs and MON100 trades at a premium. How MON100, QQQ/QQQM and Irish UCITS ETFs compare on cost, tax and estate tax.
US Stocks vs International Mutual Funds: Which Is Better for Indians in 2026?
ComparisonOctober 20267 min read
Most Indian international funds are closed to new money and some India-listed ETFs trade at 20%+ premiums; direct US stocks are open but use LRS and TCS.
Form 67: How to Claim Foreign Tax Credit on US Dividends (Step by Step)
TaxationOctober 20267 min read
Form 67 claims credit for the 25% US tax on dividends. For FY 2025-26 income it is due by 31 March 2027; income from 1 April 2026 moves to Form No. 44.
Schedule FA Penalty: What Happens If You Don’t Report Foreign Stocks in Your ITR
TaxationOctober 20267 min read
Every US share and ETF must go in Schedule FA at any value. The ₹10 lakh Black Money Act penalty, the ₹20 lakh carve-out and how to fix a missed entry.
Tax on US Stocks Bought Through GIFT City (2026 Guide)
GIFT CityOctober 20267 min read
GIFT City does not change your tax as an Indian resident: 12.5% on long-term gains, slab rate on short-term gains and dividends, with worked examples for 2026-27.
Tax on US Stocks in India: Capital Gains, Dividends and Reporting
TaxationAugust 20267 min read
LTCG at 12.5% over 24 months, STCG at slab, why the ₹1.25 lakh exemption does not apply, how USD gains convert to rupees, and what each schedule of your ITR needs.
Schedule FA: Reporting US Stocks and Foreign Assets in Your ITR
TaxationAugust 20265 min read
Disclosure is triggered by holding the asset, not by profiting from it. What to report, the calendar-year trap, peak value, and why the penalty exposure is disproportionate.
Dividend Tax on US Stocks for Indian Investors
TaxationAugust 20265 min read
25% withheld in the US, taxed again in India on the gross amount, then relieved by foreign tax credit — with a worked example showing where the money actually lands.
TCS on LRS Remittances: 20% Above ₹10 Lakh, and How It Is Credited
LRS & ComplianceAugust 20265 min read
TCS is a prepayment of your own tax, not a charge for investing abroad. How the cumulative threshold works, why the 2% rate does not apply, and the cost that is real.
India-US DTAA and Foreign Tax Credit: Form 67 and Form 44
TaxationAugust 20265 min read
Where the treaty actually applies, how to claim credit in India, and the Form 67 to Form 44 transition — with the years stated, because getting them backwards misdirects anyone filing now.
US Estate Tax for Indian Investors: The USD 60,000 Threshold
TaxationAugust 20265 min read
Rates to 40% above a USD 60,000 exemption, no Indian treaty relief, and a threshold that portfolios grow into. Under-discussed, and worth knowing before you cross it.
Form W-8BEN Explained for Indian Investors
TaxationAugust 20265 min read
A short declaration that cuts dividend withholding from 30% to 25%. What it asks for, why the address and PAN fields matter, and the silent expiry that catches people.
How to Report US Stocks in Your ITR: A Step-by-Step Walkthrough
TaxationAugust 20265 min read
Which form, which schedules, how to convert USD gains, where the foreign tax credit goes, and the six mistakes that cause most of the trouble.
Global Taxes: What Indian Investors Need To Know
TaxationJune 20268 min read
The same global exposure can be taxed very differently depending on the route used — capital gains, dividends, withholding tax, LRS TCS, and foreign-asset reporting across US stocks, ETFs, feeder funds, and GIFT City.
RSU Taxation Explained for Indian Employees Holding US Shares
TaxationJune 20267 min read
How US RSUs are taxed for Indian employees — tax at vesting, capital gains on sale, dividend withholding, Schedule FA reporting, and the concentration risk of holding too much employer stock.
Asked most often about Tax on US Stocks and Global Investments
Answered here word for word as they are published to search engines as structured data. Nothing is summarised for the page.
How are capital gains on US stocks taxed in India?
If you hold a US stock or ETF for more than 24 months, the gain is Long-Term Capital Gains taxed at a flat 12.5% (plus surcharge and cess), without indexation. If you hold for 24 months or less, it is Short-Term Capital Gains, added to your income and taxed at your slab rate. Rates stated as of August 2026.
Does the ₹1.25 lakh long-term capital gains exemption apply to US stocks?
No. The ₹1.25 lakh LTCG exemption applies to Indian listed equity and equity mutual funds only. Gains on US stocks and ETFs do not benefit from it, so long-term gains are taxable from the first rupee.
Do I pay tax in the United States on my US shares?
For ordinary US shares and most ETFs, you do not pay US tax on your capital gains; they are taxed in India. You do pay US withholding tax on dividends — 25% under the India–US tax treaty when a valid Form W-8BEN is on file, otherwise 30% — which you can claim as a credit in India, up to the Indian tax on that income. US estate tax can apply if a holder dies owning US assets worth more than US$60,000.
What is TCS and is it an extra cost?
TCS (Tax Collected at Source) is collected by your bank when you remit money abroad under the LRS. For overseas investments it applies at 20% on the amount exceeding ₹10 lakh of total LRS remittances in a financial year — the first ₹10 lakh attracts none. It is credited against your income tax when you file your return, so it is an advance, not an extra tax. Any refundable excess depends on your tax position and the filing process.
Do I have to disclose US shares in my Indian tax return even if I made no profit?
Yes, if you are resident and ordinarily resident in India. Every overseas investment, brokerage account and RSU holding must be disclosed in Schedule FA of your Indian tax return regardless of whether there was any gain. Non-disclosure carries exposure under the Black Money Act.
Is there a US estate tax on shares held by Indian investors?
For US estate tax, status turns on citizenship and domicile, not income-tax residence: an Indian resident who is neither a US citizen nor domiciled in the US is generally a non-resident alien, and US-situs assets above a USD 60,000 exemption can attract US estate tax at rates up to 40%. A US estate tax return (Form 706-NA) is generally required where US-situs assets exceed USD 60,000 at death. India does not have an estate tax treaty with the US that meaningfully raises that threshold. It affects a minority of investors but is worth planning for above that level.
The other hubs.
6 more subjects cover the rest of the ground, from the remittance route to what is owed at the far end of it.
Investing in US Stocks from India
Everything an Indian investor needs to buy US-listed shares — the legal route, the practical steps, the real costs.
Understanding the US Stock Market
When the US market is open in IST, which exchange is which, and what the headline indices actually track.
US ETFs, Index Funds and International Mutual Funds
Index exposure without picking stocks — and how the route you choose changes your tax treatment.
LRS, TCS, Remittance and Compliance
Getting money out of India legally, and getting it back — limits, forms, timelines and taxes at each step.
International and Global Investing
Why investors hold assets outside India, what it can and cannot do, and the factors that bear on how much.
Getting Started with Global Investing
New to this? Start here — the routes, the process and the questions worth settling first.
Where to go next
Next: read the guides above, or speak to a tax adviser about your situation.