How to Invest in US and Global Stocks from India (2026 Guide)

Under the Foreign Exchange Management Act (FEMA) and RBI's Liberalised Remittance Scheme, Indian residents can remit up to $250,000 per financial year (April–March) outside India. This covers investments in foreign stocks, ETFs, and bonds.

• $250,000 annual limit per individual. For a married couple, that's $500,000 combined.
• Remittance is processed through your Indian bank (HDFC, ICICI, Axis, SBI, etc.).
• Your bank will require Form A2 for each outward remittance and will file the LRS declaration with RBI.
• LRS cannot be used for speculative purposes — it covers portfolio investment (stocks, ETFs, bonds) in listed foreign securities.
• Cryptocurrency remittance: not covered under LRS. Sending money abroad to buy crypto is not permitted under current RBI guidelines.

Effective October 2023, your bank collects TCS (Tax Collected at Source) at 20% on LRS remittances above ₹7 lakh per year for investment purposes. Key points:

• First ₹7 lakh/year: no TCS (or 5% TCS for education/medical — lower rate doesn't apply to investment remittances).
• Above ₹7 lakh: 20% TCS. On ₹10 lakh remittance (₹3 lakh above threshold), you'd pay ₹60,000 TCS.
• TCS is NOT an additional tax — it's advance tax. You get it back fully as a credit when filing your ITR.
• Impact: TCS is a cash flow cost. You remit ₹10 lakh, ₹60,000 goes to the government temporarily. You'll reclaim it in 3–15 months via ITR filing.
• Reduce TCS impact: spread remittances across financial years to stay under ₹7 lakh threshold, or plan ITR filing to reclaim TCS quickly.

FX cost is the biggest variable when investing globally from India. Here's what each platform charges on $10,000 invested:

1. Interactive Brokers India: $10 FX cost per $10,000. Industry best. Direct NYSE/NASDAQ access. LRS-compliant.
2. Vested Finance: ~$30–50 per $10,000. Higher than IBKR but simpler onboarding for Indians.
3. INDmoney: ~$40–60 per $10,000. Integrated with Indian portfolio tracking. More expensive than IBKR.
4. Groww US stocks: ~$50–70 per $10,000. Simple UI but highest cost of the major platforms.
5. Zerodha (via partner): similar to Groww. Domestic stocks are Zerodha's strength, not US.

• Foreign stock gains are taxed in India as capital gains. No special treatment for foreign vs domestic.
• Short-term capital gains (held under 24 months): taxed at your slab rate (up to 30%).
• Long-term capital gains (held over 24 months): taxed at 12.5% (post-Budget 2024) without indexation benefit for foreign assets.
• Dividends from foreign stocks: taxed as income at your slab rate. US withholds 25% (India-US DTAA). You can claim this as a foreign tax credit in India (Form 67 in ITR).
• Currency gain/loss: gains from INR/USD exchange rate movement are also taxable. If you buy USD at ₹83 and sell at ₹86, the ₹3 gain per USD is taxable as capital gains.

1. Go to interactivebrokers.co.in and start an account application.
2. Complete KYC: PAN, Aadhaar, bank statement, passport photo, signature.
3. IBKR India review typically takes 2–5 business days.
4. Once approved, fund via LRS: go to your Indian bank, request an outward remittance, fill Form A2, state purpose 'Investment in foreign securities'.
5. Funds arrive in IBKR in 3–7 business days.
6. Convert INR to USD in IBKR using FX Trader (0.08–0.2 bps spread).
7. Buy US stocks, ETFs, or other instruments.