Buying a piece of Apple, Microsoft or Nvidia is no longer out of reach for a resident. The regulatory framework has changed. The platforms have grown.. The process still involves a cross-border remittance, a foreign brokerage account and a set of tax and reporting obligations that do not exist for domestic shares.
The starting point is the Liberalised Remittance Scheme. The RBI allows resident individuals to send up to $250,000 each year for permitted overseas investments, including foreign securities. No special approval is needed if the limit is not exceeded.
The routes to US shares
There are three main ways to access individual US shares from India.
Indian brokers with US tie-ups. ICICI Direct, HDFC Securities, Axis Securities and a few discount brokers have built access to NASDAQ and NYSE through partnerships with registered brokers. The process is similar to brokerage: open an international trading account complete KYC, remit dollars under LRS and buy.
Global investing platforms. Platforms like INDmoney, Vested Finance and Tickertape partner with US-registered brokers. Offer digital onboarding. Fractional shares are supported,. An investor can buy a slice of a high-priced stock for a few hundred rupees.
GIFT City IFSC platforms. NSE International Exchange (NSE IX). India INX operate platforms inside GIFT City where US-listed stocks can be traded. Investors complete KYC, remit funds in rupees and execute trades routed through IFSC accounts. Upstox, Dhan and SBICAP Securities have launched US stock trading through this route.
The step-by-step process
Step 1: Choose a platform and complete KYC. Open a GIFT City investment account. The documentation includes PAN, Aadhaar, a passport for confirming residence status and bank details. A W-8BEN form establishes -US status, which reduces the dividend withholding tax from 30% to 25%.
Step 2: Remit funds under LRS. Transfer rupees from an Indian bank account to the GIFT City brokerage account. The bank converts rupees to dollars. Applies a forex spread of 0.5% to 1.5%. Form A2 is. The purpose code classifies the transfer as an overseas investment.
Step 3: Select the stock and place the order. Browse the platforms list of US stocks. Large-cap stocks like Apple, Microsoft and Nvidia are the liquid. Place a market order or a limit order. Fractional investing allows the investor to specify a dollar amount than a number of shares.
Step 4: Track the holding. Keep tax documents. The position appears in the account. Dividends are credited proportionally. The platform provides trade confirmations and statements needed for ITR filing.
The cost structure
Brokerage. Platform-dependent. Dhan charges 0.25% of transaction value. Tickertape starts at 0.15%. Some platforms offer zero brokerage on trades.
Forex spread. The banks markup over the interbank rate, 0.5% to 1.5%. This is the controllable cost.
TCS. Once total LRS remittances cross ₹10 lakh in a year 20% TCS applies on the excess. It is adjustable against the tax liability or refundable but it blocks cash.
Expense ratio. Individual shares do not carry an expense ratio. However the platform may charge an account maintenance fee or a custody fee. These should be confirmed before opening the account.
The tax treatment
Individual US shares are treated as securities under Indian tax law.
Capital gains. Held for than 24 months gains are taxed at 12.5% without indexation. Held for 24 months or less gains are added to income. Taxed at the slab rate. The ₹1.25 lakh LTCG exemption does not apply, because that exemption is for specified Indian listed securities.
Dividends. The US withholds 25% if Form W-8BEN is on file. India taxes the dividend at the slab rate. Form 67 allows a Foreign Tax Credit to offset the US portion, capped at the lower of the two liabilities.
Schedule FA. Resident and Ordinarily Resident taxpayers must disclose all assets in Schedule FA of the ITR including individual US shareholdings. The disclosure applies in years when no shares were sold and no dividends were received.
What retail investors should take from this
Buying US shares is now accessible but the compliance burden is real. The Schedule FA disclosure the Form 67 filing and the 24-month holding period are the three things that determine the after-tax outcome.
For an investor starting with an amount a broad US ETF may be a better first step than an individual stock. The ETF provides diversification. Carries the same tax treatment. Once the investor is comfortable with the process individual shares can be added.
The common mistake is treating US shares like domestic shares. The tax rules are different the reporting is different. The holding period is different. Getting those right is more important than picking the stock.
Frequently Asked Questions
1. Can Indian residents buy US shares?
Yes. Under the RBIs Liberalised Remittance Scheme resident individuals can remit up to $250,000 per year for permitted overseas investments, including individual US shares.
2. What is the minimum investment for US shares?
Platforms like Upstox, Tickertape and NSE IX Global Access support investing from $1 roughly ₹90. This allows investors to buy a slice of a priced stock without buying a whole share.
3. What is the holding period for long-term capital gains on US shares?
24 months. US shares are treated as securities under Indian tax law so the long-term threshold is longer than the 12 months that applies to Indian listed equity. Gains after 24 months are taxed at 12.5% without indexation.
4. How are dividends from US shares taxed?
The US withholds 25% if Form W-8BEN is on file. India taxes the dividend at the slab rate. Form 67 allows a Foreign Tax Credit to offset the US portion, capped at the lower of the two liabilities.
5. Do I need to disclose US shareholdings in my ITR?
Yes. Resident and Ordinarily Resident taxpayers must disclose all assets, in Schedule FA of the ITR including individual US shareholdings even in years when no shares were sold and no dividends were received.
