How are US stocks taxed in India?

US stocks are taxed in India as capital gains and dividend income. STCG ( 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.

What is STCG vs LTCG for US stocks?

STCG (Short-Term Capital Gains): 24 months holding = taxed at fixed 20% + cess with indexation benefit allowed.

How to calculate US stock tax in India?

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.

How does DTAA reduce tax on US stock dividends?

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.

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ArticlesApr 12, 2026

How US Stocks Are Taxed in India (2026 Guide + Calculator)

Learn how STCG, LTCG, dividend tax, forex gains, and DTAA benefits impact your US stock investments. Complete 2026 tax guide with real examples.

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