What are taxation implications to trade in US markets? Whether the profit is taxed in USA or India or both? Whether we should file Income tax returns in USA? Whether audit by US auditors will be necessary in case of loss like how it is in India? Wish someone trading / investing in the US markets share their genuine experience.
@anugnani
Hi, are you a resident or RONOR or NRI as per Income Tax Act ?
The answer depends a lot on this information.
Thank you. I am wholly resident in India and do not even have a passport 
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Well in that case, you won’t be required to file a return in US. You will have to file your return in India along with the disclosure of holdings in the US companies and capital gain if any.
Regards,
Aditya
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Thanks a lot. If I am not filing return in the US then I will be liable to pay tax only in India if there are profits. And if there is a loss then can it be carried forward too? Kindly reply when convenient. How do they charge GST on transaction charges and brokerage to me as the service is similar to export of services? Please let me know if there is any authentic source where I can get this info.
Hi,
Yes, you can carry forward your losses.
GST will be applicable here as the brokerage firm is giving you the benefit in India. If you want to understand how does the Place of Supply concept works then you can get lot of articles online as well. However, I don’t think that it comes under as export of services according to my study of GST.
Regards,
Aditya
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Hey @anugnani,
With regard to taxation in India, you need to file the ITR and disclose your holdings. In case you have any capital gains the same needs to be reported as well and capital losses can be carried forward.
Moreover, with regards to taxation in the US, you can get in touch with a CA who has expertise in US taxation.
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