Question 1

How are US stocks taxed in India?

Accepted Answer

US stocks are taxed in India as capital gains and dividend income. STCG (<24 months) is taxed as per your income slab (10%, 20%, or 30%). LTCG (>24 months) is taxed at 20% with indexation benefits. Dividends get 20% withholding under DTAA, plus applicable income tax. Forex gains/losses also apply based on USD-INR rates.

Question 2

What is STCG vs LTCG for US stocks?

Accepted Answer

STCG (Short-Term Capital Gains): <24 months holding = taxed at your income slab rate. LTCG (Long-Term Capital Gains): >24 months holding = taxed at fixed 20% + cess with indexation benefit allowed.

Question 3

How to calculate US stock tax in India?

Accepted Answer

Subtract purchase price from sale price to get capital gain. Adjust for USD-INR forex differences at purchase and sale dates. Apply tax rate: your slab for STCG or 20% + cess for LTCG. Add dividend income tax if applicable. Use our US stock tax calculator to automate all calculations.

Question 4

How does DTAA reduce tax on US stock dividends?

Accepted Answer

The India-US DTAA reduces US withholding tax from 30% to 15%. You pay 15% to the US, then India taxes net dividend at your slab rate. This prevents double taxation on the same dividend income.