On 7 October 2026, Mirae Asset Sharekhan said resident Indians could buy more than 10,000 U.S.-listed stocks and ETFs through its broker in GIFT City, according to a company announcement carried by Business Standard. It is the latest of several routes that let investors invest in U.S. stocks from India within a few days of opening an account. Access has become the easy part, which moves the real questions to what happens after the money leaves the country.
Whichever route an investor uses, the same rules travel with a U.S. share. They cover the remittance limit and tax collected at source in India, U.S. tax on dividends, U.S. estate tax and reporting in the Indian return. These rules, more than the platform, decide what a U.S. holding costs and how much paperwork it creates. They also explain why U.S. real estate, the other large dollar asset Indian families consider, behaves so differently and deserves separate checks. The wider case for holding wealth outside the rupee is set out in the guide to dollar assets for Indian investors.
The Routes to Invest in U.S. Stocks from India
There are four common routes. The first is an account with an overseas broker, funded through the Liberalised Remittance Scheme for U.S. investments, which lets each resident individual send up to US$250,000 abroad in a financial year. The second is a broker based in GIFT City's International Financial Services Centre, such as the one announced this month. Money sent to GIFT City from the rest of India still moves under LRS, so the same annual limit and bank paperwork apply.
The third route is an Indian mutual fund or ETF that invests overseas, bought in rupees with no remittance by the investor. The constraint here is capacity. SEBI limits overseas investment by the whole mutual fund industry to US$7 billion, with US$1 billion per fund house, and several international schemes have paused or restricted fresh money as the industry approached that limit. The fourth route is a fund set up in GIFT City that pools money from Indian investors for U.S. markets, which is again funded under LRS.
Each route involves a trade-off. A direct broker account gives the investor ownership of individual shares and full choice, but the investor handles the remittance, the U.S. tax forms and the Indian reporting. A domestic fund keeps the paperwork in India, although the investor cannot pick the shares and may find the scheme closed to new money.
What Happens When the Money Leaves India
Every LRS remittance passes through an authorised dealer bank, which collects Form A2, confirms the purpose code and then sends the money. Under section 394 of the Income-tax Act, 2025, the bank also collects tax at source, known as TCS, on remittances for investment. According to the Income Tax Department, TCS is nil on the first ₹10 lakh in a financial year and 20% on the amount above it, as of October 2026.
TCS is not a final tax. It appears in Form 26AS and can be claimed as a credit against income tax, or refunded through the return. Even so, it holds back cash until the return is processed, so large remittances are worth planning with a CA. When several family members invest, each person must remit from their own account and own their share, and the clubbing of income and gift tax rules still need to be checked.
How the U.S. Taxes Indian Holders of U.S. Shares
The U.S. withholds tax on dividends paid to nonresidents at 30%, or at a lower treaty rate, according to the IRS. An investor claims the treaty rate by giving the broker Form W-8BEN, a short certificate of foreign status. Under Article 10 of the India-U.S. tax treaty, the rate for an individual is capped at 25% of the gross dividend, and the broker reports the payment and the tax withheld on Form 1042-S.
Gains from selling U.S. shares generally fall outside U.S. tax for a nonresident who spends fewer than 183 days in the U.S. during the year, according to IRS guidance. India, by contrast, taxes both the dividend and the gain as part of the investor's income. The U.S. tax withheld on dividends can usually be claimed as a foreign tax credit, which the U.S. real estate tax guide for Indian investors explains in detail. Since 1 April 2026 that credit is claimed on Form 44, which replaced Form 67, as described in this explainer on the Form 44 change. Residents must also list their foreign shares and accounts in Schedule FA of the income tax return, even in a year with no income from them.
The Estate Tax Question Many Investors Miss
U.S. estate tax is the rule that surprises Indian holders most often. When a nonresident who is not a U.S. citizen dies, the executor must file Form 706-NA if the person's U.S.-situated assets were worth more than US$60,000, according to the IRS. Shares of U.S. companies count as U.S.-situated assets, even when the certificates are held abroad or in a nominee's name.
For an investor whose U.S. portfolio grows quietly over a decade, this can become the largest tax question attached to the holding, and it falls on the family rather than the investor. The U.S. estate tax guide for global investors explains how the tax is worked out and why the way an asset is owned matters as much as what the asset is.
Where U.S. Real Estate Fits Beside U.S. Stocks
Listed U.S. shares and U.S. real estate are both dollar assets, but they serve different purposes. A share can usually be sold on any trading day, its price moves every second, and its value follows company profits and market sentiment. Income-producing commercial property earns rent from tenants under leases, its value is appraised rather than quoted, and an investor's money is usually committed until the property is sold.
Indian investors can reach U.S. property in two broad ways. U.S.-listed REITs trade like shares and carry the same remittance, tax and estate rules described above, with their own treaty conditions, which this guide to U.S. REITs for Indian investors sets out. Private U.S. real estate is held differently. Indian investors in private deals commonly invest through a U.S. corporation, known as a blocker, which holds the property interest, and they typically receive Form 1042-S for distributions.
The two can sit side by side because different forces drive them. A portfolio of U.S. shares follows listed markets, while a private property depends on its tenants, its loan and its local economy. Net lease, self-storage and multifamily property each respond to those forces in their own way, as the U.S. real estate market guide describes by property type. Neither route is better than the other, and each needs its own checks.
Risks and Limits of Holding U.S. Assets from India
Every route described here can lose money. Share prices can fall sharply and stay low for years, and a portfolio built around a few large U.S. companies carries concentration risk. Currency movements cut both ways, because a stronger rupee lowers the rupee value of any dollar holding, just as a weaker rupee raises it.
Private real estate adds risks of its own. Investors face loss of capital, illiquidity, falling property values, tenants leaving, distributions not being paid, and the effect of leverage and refinancing on the property's finances. Platforms and structures also differ in fees, in how investor money is held and in what happens if the operator fails, so these points belong on every checklist.
Choosing a Route Is the Smaller Decision
The new GIFT City offering shows how quickly access to U.S. markets is widening for Indian investors. Yet access was never the main difficulty. The remittance limit, TCS, U.S. withholding, estate tax exposure and Indian reporting follow the asset rather than the app, and they apply in much the same way to every route.
For an investor building dollar exposure, the more useful exercise is to decide what each holding is for, how easily it can be sold, how it is owned and who will handle it if the investor dies. Listed shares and private property give different answers to each question, which is why they are best judged separately and then fitted together, as the guide to dollar assets and global wealth strategy sets out. Eligible investors can review how investing in U.S. real estate from India works on Raveum, including the property, sponsor, ownership structure, fees, risks and offering documents for each opportunity.
Frequently asked questions
Is it legal for Indians to invest in U.S. stocks?
Yes. Resident Indians can invest in U.S. stocks under the RBI's Liberalised Remittance Scheme, which allows up to US$250,000 per person in a financial year. The money must go through an authorised dealer bank with Form A2 and follow FEMA overseas investment rules. Indian mutual funds and GIFT City routes are also available.
How much can you invest in U.S. stocks from India each year?
Under LRS, each resident individual can remit up to US$250,000 in a financial year, from 1 April to 31 March, for all permitted purposes combined. Travel, education and gifts abroad use the same limit. Family members can each use their own limit, but each must remit from their own account and own their investment.
Is TCS charged when you invest in U.S. stocks?
Yes, above a threshold. As of October 2026, banks collect no TCS on the first ₹10 lakh of LRS remittances for investment in a financial year and 20% on the amount above it. TCS is not an extra tax. It appears in Form 26AS and can be claimed as a credit or refund in the income tax return.
How are dividends from U.S. stocks taxed for Indian residents?
The U.S. withholds tax on dividends paid to nonresidents at 30% unless a treaty rate applies. With Form W-8BEN, an Indian resident individual can claim the India-U.S. treaty rate of 25%. India then taxes the dividend as income, and the U.S. tax withheld can usually be claimed as a foreign tax credit in the Indian return.
Does U.S. estate tax apply to Indians who hold U.S. shares?
It can. The IRS treats shares of U.S. companies as U.S.-situated assets, and the estate of a nonresident must file Form 706-NA if those assets were worth more than US$60,000 at death. U.S. estate tax may then be due. Investors with sizeable U.S. holdings should discuss ownership and succession with a tax adviser.
What are the main risks of holding U.S. stocks or U.S. property from India?
Both can lose value, and currency movements can raise or lower their worth in rupees. Shares can fall sharply in a market sell-off. Private U.S. real estate adds illiquidity, falling property values, tenants leaving and distributions not being paid. Investors should check how easily each holding can be sold and how it is owned.
This article is for general education only and is not investment, tax or legal advice. Rules change and depend on individual circumstances. Investing in private real estate involves risk, including loss of capital, illiquidity, falling property values, distributions not being paid and currency movements. Participation is limited to non-U.S. persons under SEC Regulation S and verified U.S. accredited investors under Regulation D Rule 506(c), and offerings on Raveum are not open to the general public.
