How taxation works in

US stocks?

Profits when you sell at a higher price than your purchase price

What is taxed?

Dividends (if any)

TCS and GST on forex transactions

Tax on Profits

If sold <24 months

If sold >24 months

Let's say you bought a US Stock in Dec‘21 for ₹1,00,000, when the stock price was $10, getting you 134 units. Today the share price is $40, and your portfolio value is effectively ₹4,48,138.

Tax on Profits

TCS Rates for remittance towards the purpose of investments abroad including investing in US stocks from India

Up to 7 Lakh - 0%

Above 7 Lakh - 20%

In the Union Budget 2025-26, the TCS threshold for foreign remittances was increased to ₹10 lakh, up from the previous limit of ₹7 lakh.

The good news is that you can claim this deducted money while filing your taxes. You can get your money back in one of two ways:

Claim it as an income tax refund.

Claim it as a credit while filing your ITR or computing your advance taxes.

Tax Collected at Source

Minimum GST amount on any transaction is ₹45.

Upto 1 Lakh

₹45 or 0.18% of amount whichever is higher

GST on Forex transactions



Dividends

If you receive any dividend from the stock, Default rate of 25% of the amount will be deducted by the US stock broker.

This can be claimed back during your ITR filing in India



Fi makes it easy and simple with ready-to-use capital gains reports at the end of the tax year