I am a resident of India. Suppose I have been vested or bought some US stocks on Feb 27, 2025, given I have already filed the W-8 BEN form, then, may I know the below:
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(a) What is the current long-term period on US Equity and US ETFs listed on NASDAQ/NYSE - 1, 2, or 3 years? (b) Similarly, for ETNs (Exchange Traded Notes), listed on the US exchange? - What I learnt is that US stocks and ETFs come under the unlisted stock category in India, and that gains on holdings 2 years or longer are considered long-term capital gains. But I am not sure if it includes ETNs as well. Please guide for ETNs?
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(a) What will be the taxation: short-term and long-term capital gains on US Equity and ETFs (listed in the US, purchased/vested on or after Feb 27, 2025)? Note: I filled out the W-8 BEN form to save taxes by the US Govt. (b) Similarly, what will be the taxation: short-term and long-term capital gains on ETNs (Exchange Traded Notes)?
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(a) Can long-term capital loss on US stocks or ETFs (listed in the US) be adjusted with long-term capital gains on Indian stocks, mutual funds & ETFs (listed in India, i.e., listed on NSE/BSE) in the same F.Y. and vice-versa? (b) Similarly for short-term CG? (c) Similarly, can capital loss/gain on US-listed ETFs or stocks be adjusted with the capital gains/losses on the US-listed ETNs (Exchange Traded Notes) in both short- and long-term periods? What I learnt is: (a) Yes for long-term; (b) Guide me for short-term CG, and (c) For ETNs.
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(a) Can long-term capital loss on US stocks or ETFs (listed in the US) be carried forward to adjust with US stocks or ETFs? If yes, then for how many years? (b) Similarly, for short-term CG? (c) Similarly, for US-listed ETNs?
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(a) Can long-term capital loss on US stocks or ETFs (listed in the US) be carried forward to adjust with Indian (i.e., listed on NSE, BSE) Stocks, mutual funds, or ETFs, in the next 8 F.Y. (just like in India)? (b) Similarly, for short-term CG on US stocks or ETFs (listed in the US)? (c) Similarly for ETNs (listed in the US)?
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Further, what are the long-term and short-term period, taxation, and loss carry-forward rules for US ETFs listed in India - e.g., MON100 and MAFANG?
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If we transfer funds to a US broker to buy stocks, then in AIS/TIS it is reported as “outward foreign remittance/purchase of foreign currency”, do we need to do anything in our ITR, if we are not selling those stocks? Similarly, if we purchase something from the US online/offline (say chocolates, toys, gifts, etc.) for myself or my family?
I believe this post will be beneficial to many community users who invest in the US or are planning to invest in the US and would like to understand how the taxation works under different asset classes and scenarios.
Thank you! @Quicko