US shares tax summary
Capital gains, dividends and foreign tax credit from US shares, with where each figure goes in your return.
Financial year
2025–26
Assessment year
2026–27
Slab rate used
30%
Exchange rates
As saved with each trade
Tax payable in India
₹96,911
Capital gains
₹6,63,380
Dividends, gross
₹3,572
Foreign tax credit
₹893
How the tax is worked out
| Income | Amount ₹ | Rate | Tax ₹ |
|---|---|---|---|
| Long-term capital gainsAAPL, NVDA, held more than 24 months | 6,05,960 | 12.5% | 75,745 |
| Short-term capital gains, netGains ₹93,840 less losses ₹36,420 | 57,420 | 30% | 17,226 |
| Dividends from US companies3 payments, gross before US tax | 3,572 | 30% | 1,072 |
| Tax before cess | 94,043 | ||
| Health and education cess at 4% | 3,762 | ||
| Less relief for US tax on dividends | −893 | ||
| Tax payable in India on US shares | 96,911 |
Where each figure goes in your return
ITR-2 for most investors| Schedule | What to enter | Amount ₹ |
|---|---|---|
| Schedule CG | Long-term gains on foreign shares, taxed at 12.5% | 6,05,960 |
| Schedule CG | Short-term gains, after setting off short-term losses | 57,420 |
| Schedule OS | Dividends, gross | 3,572 |
| Schedule FSI | Foreign income: dividends and capital gains from the United States | 6,66,952 |
| Schedule TR | Tax paid in the United States, relief claimed under section 90 | 893 |
| Form 67 | File on the income tax portal before your return | 893 |
| Schedule FA | Every US holding during calendar year 2025, sold or not. List these from your broker statements. | — |
Notes
- Tax on short-term gains and dividends uses your 30% slab. Your final liability depends on your total income, surcharge and any other deductions.
- Gains from foreign shares don't get the ₹1.25 lakh exemption under section 112A, which applies only to listed Indian equity.
- Brokerage and fees aren't included. Adding them lowers your gains.
Capital gains statement
Every US share sold in financial year 2025–26, converted to rupees. For Schedule CG.
Long-term gains, 12.5%
₹6,05,960
Short-term gains
₹93,840
Short-term losses
−₹36,420
Net short-term, at slab
₹57,420
Each sale
Gain split into the change in share price and the change in the rupeePurchase, 15 Jan 2025
5 × $545.00$2,725.00
Rate used₹86.40
Cost in rupees₹2,35,440
Sale, 7 Apr 2025
5 × $465.00$2,325.00
Rate used₹85.60
Sale value in rupees₹1,99,020
Gain
−₹36,420
Share price−₹34,240
Rupee−₹2,180
Purchase, 10 Mar 2023
100 × $120.00$12,000.00
Rate used₹82.10
Cost in rupees₹9,85,200
Sale, 14 Jun 2025
100 × $150.00$15,000.00
Rate used₹85.60
Sale value in rupees₹12,84,000
Gain
₹2,98,800
Share price₹2,56,800
Rupee₹42,000
Purchase, 12 Feb 2025
10 × $410.00$4,100.00
Rate used₹86.70
Cost in rupees₹3,55,470
Sale, 18 Sept 2025
10 × $510.00$5,100.00
Rate used₹88.10
Sale value in rupees₹4,49,310
Gain
₹93,840
Share price₹88,100
Rupee₹5,740
Purchase, 6 Jun 2023
25 × $44.00$1,100.00
Rate used₹82.40
Cost in rupees₹90,640
Sale, 20 Nov 2025
25 × $180.00$4,500.00
Rate used₹88.40
Sale value in rupees₹3,97,800
Gain
₹3,07,160
Share price₹3,00,560
Rupee₹6,600
Summary for Schedule CG
| Type | Sale value ₹ | Cost ₹ | Gain ₹ |
|---|---|---|---|
| Long-term, foreign shares (AAPL, NVDA) | 16,81,800 | 10,75,840 | 6,05,960 |
| Short-term, foreign shares (VOO, MSFT) | 6,48,330 | 5,90,910 | 57,420 |
| Total | 23,30,130 | 16,66,750 | 6,63,380 |
How these figures are worked out
- Each purchase and sale is converted at the exchange rate saved with the trade, which should be the SBI telegraphic transfer buying rate (Rule 115). The rate is shown for every line.
- Holding period runs from the purchase date to the sale date. More than 24 months is long-term; 24 months or less is short-term.
- Long-term gains on sales from 23 July 2024 are taxed at 12.5% without indexation under section 112; earlier sales at 20% with indexation. Short-term losses are set off against short-term gains first, then long-term gains.
Dividends and foreign tax credit
Dividends from US shares in financial year 2025–26, the US tax withheld, and the credit you can claim. For Form 67 and Schedule TR.
Credit you can claim
₹893
Dividends, gross
₹3,572
US tax withheld
₹893
Indian tax on dividends
₹1,114
Each dividend
25% is withheld under the India–US DTAA when a W-8BEN is on file| Ex-dividend date | Share | Gross ₹ | US tax ₹ |
|---|---|---|---|
| 12 May 2025 | AAPL | 2,135 | 534 |
| 15 May 2025 | MSFT | 710 | 177 |
| 21 Aug 2025 | MSFT | 727 | 182 |
| Total, 3 payments | 3,572 | 893 |
For Form 67
Statement of income from a country outside India and tax relief claimedNotes
- Dividends are stored in rupees, at the exchange rate entered with each one.
- File Form 67 on the income tax portal before you file your return. Keep Form 1042-S from your broker as proof of US tax withheld.