How to Invest in US Stocks from India 2026: A Complete Step-by-Step Guide
Why Indian Investors Are Looking at US Stocks
US markets represent over 40% of global equity market capitalisation. For Indian retail investors, access to companies like Apple, Nvidia, Tesla, and Amazon has become not just possible but strategically important for portfolio diversification. In 2026, the route to US stock investing from India is clearer than ever.
Legal Framework: How Indians Can Buy US Stocks
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The Liberalised Remittance Scheme (LRS)
The Reserve Bank of India’s Liberalised Remittance Scheme allows Indian residents to remit up to USD 250,000 per financial year for permitted capital account and current account transactions. Purchasing listed foreign securities falls under this limit.
| LRS Feature | Details |
|---|---|
| Annual Limit | USD 250,000 per person per year |
| Who Can Use | All Indian residents (not NRIs) |
| Tax Collected at Source (TCS) | 20% on remittances above ₹7 lakh |
| TCS Refund | Claim against tax liability in ITR |
| Joint Accounts | Limit applies per individual, not jointly |
| FEMA Compliance | Bank handles AD-1 category compliance |
Route 2: GIFT City (No LRS Limit Consumed)
Investments made through GIFT City IFSC-registered brokers do not consume your LRS limit. This is because trades happen in the IFSC jurisdiction, not mainland India. This route is increasingly popular for larger investors.
Step-by-Step: How to Start Investing in US Stocks from India
- Open an international investing account with a SEBI-registered broker or GIFT City-authorised entity
- Complete KYC: PAN, Aadhaar, bank account proof
- Sign LRS declaration form at your bank or broker
- Fund your international account via wire transfer or broker’s platform
- Search and buy US-listed stocks, ETFs, or ADRs directly
- Track your positions and dividends in your account dashboard
What You Can Invest In
| Investment Type | Examples | Available via LRS? |
|---|---|---|
| US Stocks | Apple, Microsoft, Nvidia, Tesla | Yes |
| US ETFs | SPY, QQQ, VTI, VOO | Yes |
| REITs (US) | Realty Income, Simon Property | Yes |
| Fractional Shares | Buy $10 of Amazon stock | Yes (some brokers) |
| US Bonds/Fixed Income | T-bills, Corporate bonds | Limited |
| Crypto (US platforms) | Not permitted under LRS | No |
Tax Implications When Investing in US Stocks
Capital Gains Tax
Gains from US stock investments are taxed in India as per Indian income tax rules. Unlike domestic equity, US stocks do not qualify for the concessional equity LTCG rate of 12.5%. Gains are added to your income and taxed at slab rates regardless of holding period.
Dividend Withholding Tax
The US withholds 25% tax on dividends paid to Indian residents. Under the India-US DTAA, you can claim credit for this against Indian tax liability. File Form 67 before filing your ITR.
TCS on Remittances: What You Need to Know
| Remittance Amount | TCS Rate | Effective from |
|---|---|---|
| Up to ₹7 lakh per year | Nil | October 2023 |
| ₹7 lakh to LRS limit | 20% | October 2023 |
| Via education loans | 0.5% | October 2023 |
| TCS refund mechanism | Claim in ITR filing | Same year |
Common Mistakes to Avoid
- Ignoring TCS; it is refundable but ties up capital
- Not tracking cost in INR for tax calculations
- Forgetting to report foreign assets in Schedule FA of ITR
- Currency risk; USD/INR moves can amplify or reduce returns
- Over-concentration in single US tech stocks
How Lemonn Helps
Lemonn’s platform provides seamless access to international investing with integrated LRS documentation, real-time currency conversion visibility, and portfolio tracking across domestic and international holdings in one dashboard.
Disclaimer
The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Lemonn (Formerly known as NU Investors Technologies Pvt. Ltd) do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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