Buying U.S. stocks from India no longer feels like a distant goal. With the right broker, Indian investors can now access Wall Street directly, whether it’s Nvidia, Tesla, Apple, or the S&P 500. Global diversification, dollar exposure, and the chance to ride U.S. tech growth are just some of the reasons behind the surge in interest. And with investment amounts starting as low as $1, getting started doesn’t require deep pockets, just a verified trading account and a clear plan.
Not all investors approach the U.S. market the same way. Some go the direct route, opening an account with a global broker and buying shares like Apple or Amazon in real time. Others prefer the indirect path, choosing Indian mutual funds or ETFs that mirror U.S. indices such as the NASDAQ 100. Both options give you exposure to American markets, but if you want full control over what you own and when you trade, going direct offers more flexibility.
Several Indian brokers now offer U.S. stock access through tie-ups with international clearing partners. Names like Vested, Groww, and INDmoney have simplified the process, allowing users to invest under RBI’s $250,000 Liberalised Remittance Scheme. Most platforms handle compliance and onboarding digitally, making it possible to open an account, complete KYC, and fund your U.S. trading wallet without leaving your phone. What used to take weeks now takes minutes, and the barriers to entry have never been lower.
Are U.S. stocks Taxable in India?
Yes. Indian investors are required to pay tax on both capital gains and dividends earned from U.S. stocks. While the U.S. does not levy capital gains tax on Indian residents, India’s tax rules apply fully, and the final liability depends on how long you’ve held the stock.
If you sell a U.S. equity after 24 months, the gain is considered long-term and taxed at 12.5%, plus applicable surcharge and cess. There’s no indexation benefit. For shares sold before that, short-term capital gains are added to your income and taxed based on your income tax slab.
Dividends from U.S. stocks, however, are a different story. They are taxed at 25% in the U.S. before the payout even hits your account. For instance, if a company pays you $100 in dividends, you’ll receive $75 after the withholding tax. But under the India–U.S. Double Taxation Avoidance Agreement (DTAA), you can claim a Foreign Tax Credit for the $25 already deducted.
In India, the entire $100 dividend is added to your total income and taxed accordingly. The U.S. tax is not waived; it’s adjusted later when filing your return.
Pros and Cons of Investing in U.S. Stocks from India
| Pros | Cons |
|---|---|
| Global diversification across sectors not available in Indian markets | Currency risk- gains can be reduced if INR strengthens against the USD |
| Access to top U.S. companies like Apple, Google, Microsoft, and Tesla | Tax complexity – capital gains taxed in India, dividends taxed in the U.S. and India |
| Dollar exposure acts as a natural hedge against rupee depreciation | RBI remittance limits – maximum $250,000 per year under LRS |
| Potential for higher returns from developed market growth stories | High volatility in tech-heavy U.S. indices like NASDAQ |
| Fractional investing makes high-priced stocks accessible to small investors | Reporting compliance – ITR filing, Form 67, and Schedule FA required |
How to Start Investing in US Stocks from India
Getting started is simple. First, open an account with a broker that offers access to US equities; several Indian platforms now partner with US clearing firms. Once you sign up, you’ll need to complete basic KYC: PAN, Aadhaar, and proof of address.
Next, link your bank account under RBI’s Liberalised Remittance Scheme (LRS), which allows you to invest up to $250,000 abroad each year. After that, transfer funds to your US wallet and you’re ready to go. Most platforms let you buy even a fraction of a stock, so you don’t need thousands to own Apple or Amazon.
Should You Invest in U.S. Stocks from India?
If you’re looking to diversify beyond Indian markets and gain exposure to global leaders, U.S. stocks offer a compelling opportunity. From dollar-denominated assets to access to tech giants, the benefits are clear, but they come with tax and currency considerations.
For long-term investors with a global outlook, even a small U.S. equity allocation can add strength to a portfolio. Just make sure you understand the rules, pick the right broker, and stay compliant with LRS and tax filings.
This article was originally published on InvestingCube.com. Republishing without permission is prohibited.