Investing directly in US stocks from India

HDFC Sec has collabrated with Global Investing, more details here:

Please share experience if anybody signed up & using the platform.

Also enlighten on the taxation part…

@VenuMadhav @siva @nithin

Hey there!

The trading experience is still broken, and there are 2 separate logins/passwords etc. The process of remitting money is broken too, as we have to print & courier the A2 form each time we transfer money to the US. The cost of each remittance is high too, ranging from Rs. 800-2000 depending on which bank you use.

  1. Long term capital gains (beyond 24 months holding) is taxed at 20% (+surcharges etc.)
  2. STCG (below 24 months) will be taxed at the marginal income tax rate - as per the income tax slab you fall in.
  3. Dividend will be taxed in the US at a flat rate of 25%. This means that the company paying the dividend will subtract the 25% taxes before distributing the remaining 75% to the investor. US and India have a Double Taxation Avoidance Agreement (DTAA), which allows taxpayers to offset income tax already paid in the US. The 25% tax you already paid in the US (As part of Dividend income) is made available as Foreign Tax Credit and can be used to offset your income tax payable in India.