What are the tax implications of investing in US Stocks?

Tax implications of investing in US stocks are actually quite straight-forward. There is no income tax on capital gains in the US for non-US Persons. You will however have to pay capital gains tax in India, which will depend on the duration of the investment (Short term capital gains tax for investments held for less than 24 months, long term capital gains otherwise). If you receive a dividend, your tax liability in the US would be a flat 25% (lower than otherwise for a foreign investor due to the tax treaty between the US and India). This tax will be withheld before you receive the dividend, which means that you will receive 75% of the dividend as a cash payout. The good news is that you will receive foreign tax credits for the US tax, which you can utilize against your tax liability in India (as US and India have Double Taxation Avoidance Agreement). You will be able to download your tax documents right from the Winvesta app.

Disclaimer: Winvesta does not provide any tax advice and you should consult your tax advisor for specific details. Tax is subject to individual circumstances.

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