US Stocks Pricing

When you invest in US stocks, you can earn money in two ways:

• Dividends: Small payouts some companies give you.
• Profit on selling shares: If you sell a stock at a higher price than you bought it.

That's it, no other hidden income types

Short answer: Only on dividends.

Details:

• Dividends: The US deducts tax before the money reaches you (usually up to 25%).
• Selling shares: The US does NOT charge any tax when you sell US stocks (for Indian investors).

So, no need to worry about US tax on capital gains

Yes, because you live in India.

• Dividends:The US deducts 25% tax before crediting dividends to you. In India, dividends are taxable as per your income slab, but you get full credit for the tax already paid in the US under the India–US DTAA — so you do NOT pay tax twice.
• Profit from selling shares: Also taxable in India.

India taxes all global income of residents

Upto Rs 10L per FY: No TCS Applicable

Above Rs 10L per FY: Bank may deduct a 20% TCS

(Claim any TCS deducted as a tax credit during your filing)

Depends on how long you hold the stock:

• Held for 24 months or less:
  Short-term gain
  Taxed as per your income slab.
• Held for more than 24 months:
  Long-term gain
  Taxed at 12.5% + surcharge & cess (without indexation).

No US tax here, only Indian tax

Important but easy to remember:

• Convert your USD transactions to INR using RBI-approved exchange rates
• Your tax-ready statement will include:
  • Dividends statement
  • Profit & Loss Statement
  • Holdings Statement

These will help while filing ITR and claiming tax credit