How to buy US stocks from India, complete 2026 guide.

Indian resident individual can invest in US stocks via LRS (Liberalised Remittance Scheme) under FEMA:

• Annual limit: USD 250,000 (~INR 2.08 crore at INR 83/USD) per financial year per individual.
• Combined limit for all overseas remittances (investment + travel + education + maintenance).
• No RBI pre-approval needed for LRS investments.

Section 206C(1G) TCS: 20% TCS on LRS remittance above INR 10 lakh per FY (cumulative across all 'other' category remittances including stock investment). TCS is advance tax credit, refundable via ITR. Use our LRS TCS Calculator.

US side: Indian individual investing in US stocks is a Non-Resident Alien for US tax. US tax treatment:

• Capital gains on US stocks: generally NOT taxable in US for Non-Resident Alien (unless US real property interests under FIRPTA).
• Dividend from US stocks: 30% US withholding tax at source, REDUCED to 25% under India-US DTAA Article 10 (portfolio dividend rate) — some brokers correctly apply 25%, others incorrectly apply 30%.
• Form W-8BEN required (filed with the broker at account opening) to claim 25% treaty rate.

Vested (vested.co.in):

• Partnered with Drivewealth (US broker).
• Fractional shares supported.
• Account opening: ~24 hours with PAN + Aadhaar + bank proof.
• Fees: USD 1 per transaction (varies by plan). No account maintenance fee on basic plan.
• Dividend handling: 25% US withholding (W-8BEN auto-filed).
• FIRC: generated for repatriation.

INDmoney (indmoney.com):

• Partnered with Drivewealth.
• Fractional shares supported.
• Integrates with Indian portfolio view across stocks, MFs, insurance.
• Fees: no commission on US stock trades (free). Spread on currency conversion.
• Dividend handling: 25% US withholding.

Angel One Global:

HDFC Securities Global Investment:

• Full-service broker route. Partnered with Stockal / Vested.
• Higher fees but integrated with HDFC Bank KYC and remittance workflow.
• Preferred for HNIs who already bank with HDFC.

Interactive Brokers (IBKR):

• Direct US broker; not India-platform-wrapped.
• Account opening is more involved (W-8BEN filed directly).
• Lower fees for large portfolios; wider product range (options, futures, international markets).
• LRS compliance still applies on the Indian side.

Platform choice drivers: fractional shares needed? (all support), fees matter? (INDmoney / IBKR win), existing broker relationship? (Angel One / HDFC), international market access? (IBKR).

US dividend from your US stocks: 25% US withholding at source (under India-US DTAA Article 10, with properly filed W-8BEN). You receive the dividend net of withholding.

On Indian side: dividend from foreign company is taxable in India as 'Income from Other Sources' at your slab rate.

To avoid double taxation, claim Foreign Tax Credit (FTC) under Section 90 read with India-US DTAA Article 25:

• FTC = lower of (actual US tax paid) or (Indian tax on the same income).
• Claim via Form 67 filed before ITR filing deadline.
• Retain US broker's Form 1099-DIV or equivalent as proof of US tax paid.

Example: Indian investor receives USD 100 dividend from Apple Inc.

• Apple pays USD 100. US tax at 25% = USD 25. Net received = USD 75.
• Indian investor reports USD 100 as foreign income on ITR. Indian tax at (say) 30% slab = USD 30.
• FTC claimed = lower of USD 25 (US tax paid) or USD 30 (Indian tax) = USD 25.
• Net Indian tax after FTC = USD 30 - USD 25 = USD 5.
• Total tax paid: USD 25 (US) + USD 5 (India) = USD 30 (effectively Indian 30% rate, no double taxation).

US side: Non-Resident Alien capital gains on US stocks (not US real property) are generally NOT taxable in US. No US tax on sale.

India side: capital gains on foreign stocks are taxable in India:

• LTCG (held 24+ months): 12.5% without indexation under current Finance Act 2024 framework.
• STCG (held under 24 months): slab rate.
• Reported in Schedule CG of ITR (ITR-2 for salary + CG; ITR-3 if also business income).
• Schedule FA mandatory disclosure of foreign stock holdings if you are Resident and Ordinarily Resident.

No treaty-based reduction on India-side capital gains (Article 13 of India-US DTAA assigns taxing right to India for the Indian resident).

• Not filing W-8BEN with broker — broker withholds dividend at 30% instead of DTAA 25%. 5-percentage-point extra on every dividend. Fix: ensure W-8BEN is on file; re-sign every 3 years.
• Not claiming Form 67 FTC — leaves US tax paid as sunk cost. Indian taxpayer pays slab tax on top of US 25%. Form 67 before ITR deadline recovers the FTC.
• Missing Schedule FA disclosure — mandatory for ROR taxpayers. Non-disclosure penalty under Black Money Act up to INR 10 lakh per undisclosed asset. US brokerage holdings always on Schedule FA.
• Exceeding LRS limit — USD 250K per FY per individual. Family office structures use multiple individuals' separate limits. Keep running tally of all overseas remittances.
• Breaking FEMA by using PayPal / crypto — investment remittance must flow through authorised dealer bank (not consumer PayPal, not crypto). Only broker-approved LRS channels.
• Missing TCS credit on ITR — Section 206C(1G) TCS is deposited to your account; must be claimed as credit on ITR via Form 26AS reconciliation.

Last updated: 2026-10-10.