Buying US shares? A complete guide to rules, limits and taxation
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Want to own Apple or Tesla stock? Here's how Indians can do it
Going global isn't just for the ultra-rich anymore. Indian investors have three legitimate routes into US stocks and global funds — and the RBI has clear rules for all of them. Here's your simple breakdown.
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3 ways to go global from India
Direct stocks: Apps like Vested or HDFC Securities Global Investing let you buy fractional shares of companies like Apple or Google.
Indian feeder funds: Invest in rupees through mutual funds that track the S&P 500 or Nasdaq 100.
GIFT City route: Platforms like INDmoney offer direct US stock ownership through India's own international exchange.
Indian feeder funds: Invest in rupees through mutual funds that track the S&P 500 or Nasdaq 100.
GIFT City route: Platforms like INDmoney offer direct US stock ownership through India's own international exchange.
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How much money can you actually send abroad?
Under RBI's Liberalised Remittance Scheme (LRS), you can send up to $250,000 per financial year, that's over ₹2 crore, toward foreign investments. No special approval needed, just stay within the limit.
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The tax surprise nobody tells you about: TCS
Sending money abroad isn't free of upfront tax. Send up to ₹7 lakh in a year? No tax collected. Cross that limit? 20% TCS kicks in on the extra amount. Good news: it's not a penalty, it's adjustable against your final tax bill or refundable when you file your return.
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How are your profits taxed?
Sell your US stocks at a profit? Here's the rule:
Held under 24 months: Taxed at your regular income slab rate.
Held over 24 months: Flat 12.5% tax, no indexation benefit.
The same rules apply to international mutual funds and ETFs.
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Dividends get taxed twice, but you can claim it back
The US taxes your dividends at 30% upfront (or 25% if you file a W-8BEN form). India taxes them again as regular income. The fix? File Form 67 to claim a Foreign Tax Credit, so you're not paying tax twice on the same money.
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Don't skip this step or face risk heavy penalties
If you own foreign stocks, you must file ITR-2 or ITR-3 and declare them in Schedule FA and FSI, profit or no profit. Skipping this isn't just risky, it can trigger serious penalties under India's Black Money Act.