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Cross-Border Investments: Tax, RBI Caps, and Reporting
Investing in US stocks subjects Indian investors to taxation in both countries. Dividends are taxed at a flat 25% withholding rate in the US, but India offers Double Taxation Avoidance Agreement (DTAA) relief when filing returns. Capital gains are taxed only in India—at slab rates for short-term gains or 20% with indexation for long-term holdings. Investments are made under the Liberalised Remittance Scheme (LRS), which permits remittances up to $250,000 per year. All returns must be reported in Indian tax filings with annual disclosure to the RBI.
Companies:
- Interactive Brokers
- Vested
Tags:
- economy
- stocks
Explore:High Return Equity Mutual Fund
positive
Cross-Border Investments: Tax, RBI Caps, and Reporting
Investing in US stocks subjects Indian investors to taxation in both countries. Dividends are taxed at a flat 25% withholding rate in the US, but India offers Double Taxation Avoidance Agreement (DTAA) relief when filing returns. Capital gains are taxed only in India—at slab rates for short-term gains or 20% with indexation for long-term holdings. Investments are made under the Liberalised Remittance Scheme (LRS), which permits remittances up to $250,000 per year. All returns must be reported in Indian tax filings with annual disclosure to the RBI.
Companies:
- Interactive Brokers
- Vested
Tags:
- economy
- stocks
Explore:High Return Equity Mutual Fund
1 min read
87 words
Taxation for US assets includes US withholding and Indian capital gains taxes, with strict RBI remittance limits and annual reporting necessary for compliance.
Investing in US stocks subjects Indian investors to taxation in both countries. Dividends are taxed at a flat 25% withholding rate in the US, but India offers Double Taxation Avoidance Agreement (DTAA) relief when filing returns. Capital gains are taxed only in India—at slab rates for short-term gains or 20% with indexation for long-term holdings. Investments are made under the Liberalised Remittance Scheme (LRS), which permits remittances up to $250,000 per year. All returns must be reported in Indian tax filings with annual disclosure to the RBI.
Investing in US stocks subjects Indian investors to taxation in both countries. Dividends are taxed at a flat 25% withholding rate in the US, but India offers Double Taxation Avoidance Agreement (DTAA) relief when filing returns. Capital gains are taxed only in India—at slab rates for short-term gains or 20% with indexation for long-term holdings. Investments are made under the Liberalised Remittance Scheme (LRS), which permits remittances up to $250,000 per year. All returns must be reported in Indian tax filings with annual disclosure to the RBI.
Companies:
- Interactive Brokers
- Vested
Tags:
- economy
- stocks
- economy
- stocks
- mutual_funds
- global
- finance