How to Buy Microsoft Shares in India: LRS, TCS & Tax Guide

Last Updated on Nov 12, 2026 by Loveesha Sharma

Resident Indian investors can hold shares of Microsoft Corporation, the US-listed software and cloud company, through overseas investing platforms, subject to the same RBI rules that apply to investing in US stocks from India. Investors remit money abroad under the Liberalised Remittance Scheme (LRS); India taxes gains, and Tax Collected at Source (TCS) may apply to larger remittances. This article explains how to buy Microsoft shares in India, the applicable rules and taxes, and the associated risks.

Table of Contents

About Microsoft

Microsoft Corporation is a US technology company that develops software, cloud services, devices and games. It was founded in 1975, is headquartered in Redmond, Washington, and is led by chairman and chief executive officer Satya Nadella. Its financial year ends on 30th June.

The business runs in two segments, following changes Microsoft announced in September 2026:

The Agents and Infra segment covers Microsoft Cloud, including Azure and Microsoft 365 commercial cloud, along with Microsoft 365 consumer cloud and industry solutions. It reported revenue of $76.8 bn, up 25%, in the quarter ended 30th September 2026, and Microsoft Cloud revenue within it was $63.9 bn.
The Devices and Consumer segment covers search and advertising, Xbox content and services, and Windows OEM and devices. It reported revenue of $15.5 bn in the same quarter, down 3%.

Microsoft stock trades on the Nasdaq. The Microsoft share price closed at $533.17 on 10th November 2026. Microsoft’s market cap was $4.0 tn on the same date, making it a mega-cap company.

Can Indian Residents Invest in Microsoft?

Yes. Resident individuals can buy US stocks from India, including Microsoft, under the LRS, within the annual limit and subject to RBI, FEMA and tax requirements.

There are two broad routes. In the direct route, an investor buys Microsoft shares through a platform that offers US stocks, and the shares are held in the investor’s name. In the indirect route, an investor buys units of Indian funds or US ETFs that hold Microsoft as part of a wider portfolio. The indirect route gives exposure through a fund, with fund fees and no direct ownership of Microsoft shares.

Investors buy Microsoft shares through a brokerage or investing platform that provides access to the Nasdaq, since Microsoft is not listed on the NSE or BSE.

How to Buy Microsoft Shares from India?

On Tickertape, you buy Microsoft shares through a US investing account in the US stocks section. The process runs in five stages:

Account opening: After logging in to Tickertape, set up your account by selecting “Get Started” under US Stocks.
Complete KYC: Verify your identity through DigiLocker or by manually uploading documents, using the investor’s PAN and identity documents.
Linking a bank: Link a supported Indian bank account to transfer funds under the RBI’s LRS.
Transfer funds: Initiate a transfer from the linked bank account. Funds may take up to seven business days to reflect, depending on the bank.
Place an order: Search for Microsoft, review its financials, and choose an investment amount. Fractional shares allow purchases from $1, and the order screen shows the order details and applicable charges before confirmation.

LRS Limit and TCS on Overseas Transfers

The LRS allows resident individuals to remit up to $250,000 per financial year for permitted overseas transactions, including investment in foreign securities, according to the RBI’s LRS FAQs. The limit resets on 1st April; each eligible family member has a separate limit, and remittances for margin or margin calls to overseas exchanges are not permitted.

TCS applies to investment remittances above a Rs.10 lakh threshold in a financial year. The threshold is cumulative across all LRS remittances and is tracked against the investor’s PAN, so it applies across banks. Above the threshold, TCS is collected at 20% on the excess. For example, a Rs.12 lakh investment-related remittance attracts TCS on Rs.2 lakh, which is Rs.40,000.

TCS is not an additional tax. You can adjust it against your final tax liability or claim it when you file your Income Tax Return, and refund timelines vary. Banks typically ask for Form A2 and an LRS declaration for each outward remittance.

Taxes on Microsoft Shares for Indian Residents

For Indian residents, India taxes gains from selling Microsoft shares. The US generally does not tax capital gains for non-US resident investors.

Holding period	Gain type	Tax rate
24 months or less	Short-term (STCG)	Investor’s income-tax slab rate
More than 24 months	Long-term (LTCG)	12.5% without indexation, plus surcharge and cess

Dividends: Microsoft pays a quarterly dividend, currently $0.98 per share. The US withholds 25% under the India-US Double Taxation Avoidance Agreement (DTAA); the dividend is also taxable in India at slab rates, and you can claim a foreign tax credit by filing Form 67.
Stock splits: A stock split, such as Microsoft’s 2-for-1 split that took effect on 18th February 2003, changes the number of shares held and the price per share but not the total value of the holding.
Schedule FA: Microsoft holdings may need to be disclosed in Schedule FA of the Income Tax Return, including small holdings and fractional shares. Investors with foreign assets generally file ITR-2 or ITR-3, depending on their income profile. Non-disclosure may attract penalties, and a tax adviser can confirm the requirements for an individual case.

Risks of Investing in Microsoft

Industry and technology risk: Software and cloud companies work in fast-changing industries. Customer needs shift, rivals launch competing cloud and AI services, and prices come under pressure. Any of these can affect how much Microsoft sells and the margin it earns.
Regulation and data rules: Cloud, software and online advertising businesses must meet competition, privacy and data-protection rules, which differ from country to country. Changes to these rules can affect how products are sold and what they cost to run.
Infrastructure and supply chain: Cloud services depend on data centres, chips and power. Shortages, export controls or delays in building capacity can raise costs or limit how much demand can be served.
Spending and sentiment: Investors closely follow Microsoft’s spending on AI infrastructure and its investment in OpenAI. Share prices can therefore move on spending plans and partner news as well as on business results.
Market and currency risk: Share prices rise and fall with company earnings, interest rates and investor mood, and returns are not guaranteed. Because the shares are priced in dollars, a stronger rupee can reduce returns in rupee terms while a weaker rupee can increase them, regardless of what the share price does.
Tax and cost risk: TCS rates, remittance limits and reporting rules can change over time. Brokerage, currency conversion and withdrawal charges also apply, so the amount an investor finally keeps can differ from the headline return.

Things to Consider Before Buying Microsoft Shares

Business mix: Microsoft earns from cloud services, software subscriptions, search advertising, gaming and devices. In the quarter ended 30th September 2026, Agents and Infra produced $76.8 bn of the $92.3 bn total revenue, so investors often follow that segment closely.
AI and partner investments: Microsoft reports some results adjusted for the impact of its investment in OpenAI. Returns from AI spending take time to materialise, and expectations can shift quickly.
Competition and pricing: Several large technology companies offer cloud and AI services. Investors commonly follow cloud growth rates and pricing, since competition can affect both sales and margins.
Shareholder returns: Microsoft returned $10.2 bn to shareholders through dividends and share repurchases in the same quarter, and raised its quarterly dividend by 8% to $0.98 in September 2026.
Valuation: Microsoft’s trailing P/E was 28.45 on 10th November 2026. Valuation ratios are usually read together with recent results and the company’s plans, rather than in isolation.
Indian presence: Microsoft operates in India, but its results are driven mainly by its global business, so developments in larger markets are generally more influential for the share price.

Conclusion

Microsoft operates across cloud computing, software subscriptions and consumer products, and its Agents and Infra segment produces most of its revenue. The direction of its cloud and AI business is therefore central to how the market views its shares. For resident Indians, access runs through overseas platforms under the RBI’s framework, with taxes, TCS and currency movements shaping the final return. Current rules, the company’s latest results and individual circumstances are the usual reference points before any decision.

For comparing US-listed companies such as Microsoft on valuation, profitability, returns and growth, the Tickertape US Stock Screener provides 70+ built-in filters on a single platform.

Frequently Asked Questions

1. Can I buy Microsoft shares from India?

Yes. Indian residents can hold Microsoft shares listed on the Nasdaq. There are two broad routes. In the direct route, you buy shares through a platform that offers US stocks, funded by a remittance under the RBI’s Liberalised Remittance Scheme (LRS), and hold them in your name. In the indirect route, exposure comes through Indian funds or ETFs that hold Microsoft as part of a US-linked portfolio. Platform availability, fees and eligibility vary.

2. Is it legal for Indians to buy Microsoft shares?

Yes. Resident Indians can invest in overseas listed shares under the LRS, which operates under the Foreign Exchange Management Act (FEMA), 1999. The scheme allows up to $250,000 per individual per financial year for permitted purposes, including investment in foreign securities. Remittances are routed through authorised banks, and you report foreign assets and income in your Income Tax Return.

Disclaimer: Rules and limits can change over time. The latest RBI, FEMA and Income Tax provisions apply.

3. How to buy Microsoft shares from India step by step?

On Tickertape, buying Microsoft shares from India involves five stages, all completed within the US Stocks section of the platform:
– Account setup: A US investing account is created by selecting “Get Started” under US Stocks after logging in to Tickertape.
– Complete KYC: Verify your identity digitally through DigiLocker or by uploading documents, using your PAN and identity documents.
– Bank link: Connect a supported Indian bank account to send funds under the LRS. Supported banks include HDFC Bank, Axis Bank, ICICI Bank, Kotak Mahindra Bank and IDFC Bank.
– Add funds: Money is transferred from the linked bank account to the US wallet, which can take up to seven business days to reflect, depending on the bank.
– Place an order: Search for Microsoft on the platform, review its financials, and choose an investment amount. Fractional investing starts at $1, and the platform shows the order details and applicable charges before you confirm the order.

4. Is there a limit on how much can be invested in Microsoft from India?

The LRS limit of $250,000 per individual per financial year covers all permitted overseas remittances combined, not only Microsoft purchases. It resets on 1st April, and each eligible family member has a separate limit. At the 10th November 2026 close of $533.17, 1,000 Microsoft shares would cost $533,170, above one person’s yearly limit. Remittances above Rs.10 lakh in a financial year also attract TCS.

5. What is the minimum amount needed to buy Microsoft shares from India?

Platforms that offer fractional investing allow purchases from as little as $1. A fractional share is a portion of a single share, so the amount invested buys a matching fraction at the prevailing price and exchange rate. One full Microsoft share cost about Rs.49,967 at the 10th November 2026 close of $533.17 and $1 = Rs.93.72.

Disclaimer: Share prices and exchange rates change throughout the day, and minimums vary by platform.

6. Do I need a US bank account to buy Microsoft shares?

No. Platforms that serve Indian residents accept funds from an Indian bank account, and the money is sent abroad under the LRS. You generally don’t need a US bank account or a US address.

7. What documents are required to invest in Microsoft from India?

KYC typically needs a PAN and an identity proof such as Aadhaar or a passport, along with an address proof. Many platforms support digital verification through DigiLocker. For each outward remittance, banks generally ask for Form A2 and an LRS declaration. Requirements differ by platform and bank.

8. How long does it take for money to reach the account?

Transfers can take up to seven business days to reflect, depending on the bank and the remittance route. The time depends on bank processing, currency conversion and the platform’s funding method.

Disclaimer: Timelines are indicative and may differ from case to case.

9. What is TCS and can it be claimed back?

Tax Collected at Source (TCS) is tax that the bank collects at the time of an overseas remittance. For investment remittances, it applies at 20% on the amount above Rs.10 lakh in a financial year, and the threshold is cumulative across all LRS remittances tracked against the PAN. TCS is not an additional tax. You can adjust it against your tax liability or claim it as a refund when you file your Income Tax Return, and refund timelines vary.

Disclaimer: TCS rates and thresholds can change. The rules in force at the time of remittance apply.

10. Does Microsoft pay a dividend?

Yes. Microsoft pays a quarterly cash dividend, currently $0.98 per share, payable on 10th December 2026 to shareholders of record on 19th November 2026, which is also the ex-dividend date. For Indian residents, US tax is withheld at 25% under the DTAA before the amount is credited, and the dividend is also taxable in India.

Disclaimer: Dividend policy can change. This answer reflects the position at the time of writing.

11. How many times has Microsoft split its stock?

Microsoft has split its common stock nine times, according to its investor relations site. The most recent was a 2-for-1 split that took effect on 18th February 2003. In a split, a shareholder receives more shares and the price per share falls in proportion, so the total value of the holding does not change.

12. Can I invest in Microsoft through an ETF or mutual fund?

Yes, indirectly. Some Indian international funds and US-listed ETFs hold Microsoft. In this case the investor owns units of the fund rather than Microsoft shares, and Microsoft forms only a part of the fund’s portfolio. Funds charge expense ratios, and their holdings and weights change over time.

13. How does the dollar-rupee exchange rate affect returns?

Microsoft trades in dollars, so rupees are converted into dollars when buying and dollars are converted back into rupees when selling. If the rupee is weaker at the time of sale than at the time of purchase, the rupee value of the holding is higher, and if it is stronger, the value is lower. This can happen even when the share price in dollars has not moved.

Disclaimer: Exchange rates move unpredictably and can increase or reduce returns in rupee terms.

14. When can I trade Microsoft shares from India?

US markets are open from 9:30 am to 4:00 pm Eastern Time on weekdays, which is 7:00 pm to 1:30 am IST during US daylight saving time and 8:00 pm to 2:30 am IST outside it. Standard time runs from 1st November 2026 to 14th March 2027. Markets are closed on weekends and US market holidays.

Disclaimer: Timings shift by an hour when US daylight saving time starts or ends, and extended-hours availability varies by platform.

15. How are Microsoft gains taxed in India?

India taxes gains from selling Microsoft shares. Holdings of more than 24 months are long-term and taxed at 12.5% without indexation, plus surcharge and cess. Holdings of 24 months or less are short-term and taxed at the investor’s income-tax slab rate. The US generally does not tax capital gains of non-US residents. Foreign holdings must be reported in Schedule FA of the Income Tax Return, which generally means filing ITR-2 or ITR-3.

Disclaimer: Tax treatment depends on individual circumstances and can change. This is general information and not tax advice.

16. Is Microsoft a good stock to buy?

Microsoft’s financials, valuation and business outlook are published in the company’s filings and on stock research pages, and whether any stock fits a portfolio depends on an individual’s goals, risk appetite and time horizon.

Disclaimer: This is not investment advice. Share prices can fall as well as rise, and past performance does not indicate future returns.

Disclaimer: This blog is for educational purposes only and does not constitute investment, tax or legal advice. Rules, limits and tax treatment may change over time. Refer to the latest RBI, FEMA and Income Tax regulations or consult a qualified professional before making overseas investments.