Do we get Indexation benefit for US stocks for the long term?

Do we (Indian citizen) get Indexation benefit for US stocks for the long term? Some people say long term is taxed at 20% without indexation while some people say its 20% + Indexation benefit.

Can you please clarity?


@Quicko Also please explain LTCG for Nasdaq 100 index funds

1 Like

FoFs, on the other, are taxed like debt mutual funds. FoF investments sold before a year attract short term capital gains tax – the returns are added to the income and taxed according to the income tax slab applicable to the investor. Investments sold after three years are taxed at 20 per cent with indexation benefit.

Read more at:

Yes, I am aware of US FoF and Index fund taxation, Thanks!
I wanted to know taxation for US stocks if it is with or without indexation benefit.

My understanding is we get indexation benefit for US FOF and Index funds but we dont get the indexation benefit for US stocks

Maybe this will help. Hope you are an indian resident.

The above post was meant for Divya11 regarding LTCG on Nasdaq 100

Thanks, I have already read the article from cleartax, groww and quicko on US taxation. Only cleartax has mentioned we get indexation benefit hence the confusion. Couple of youtubers also say we get indexation benefit for US stocks

1 Like

Refer (if u have not already):


IT Act:


Thanks. I had not read it. As per the article we get indexation benefit

1 Like

Hi @Jack_R @Divya11

Apologies for the late response.

For the Resident Individuals, Long Term Capital Gain (LTCG) is taxable at 20% (with Indexation) where long term is > 24 months and the same applies for the 100 index funds.

Hope this helps.

1 Like