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

Apple. Microsoft. Nvidia. Amazon.

These are some of the valuable companies in the world and until recently, most Indian investors could only watch their growth from a distance.

Today, buying US stocks from India is legal, straightforward, and genuinely accessible. 

Here is how it works 

What Is the Liberalised Remittance Scheme (LRS)?

The LRS is the RBI regulation that makes all of this possible.

Under this Scheme, Indian residents can remit up to USD 250,000 per financial year for permitted purposes including buying foreign stocks, ETFs, and bonds. The limit is per individual. A married couple can each remit USD 250,000, giving a household USD 500,000 of annual headroom.

All remittances must go through an RBI-authorised bank. You cannot send money directly from a personal account to a foreign broker without routing it through the official channel.

The LRS route is legal, regulated, and increasingly popular. According to RBI data, remittances under the LRS for overseas portfolio investment have grown significantly in recent years as more Indians discover the option of investing in global markets.

Ways to Invest: Direct Brokerage vs Indian Platforms

There are three routes to invest in US stocks from India.

Route 1 — Direct US Brokerage Account (LRS Route)

You open an account with an international brokerage platform which is linked to your Indian bank account. You send money in rupees, the bank converts it to dollars, and the funds land in your brokerage account. You then buy US stocks directly, fractional shares are available, so you can own a piece of Apple or Amazon starting with as little as $1. 

This route gives you direct ownership of US shares. You receive dividends, and can buy and sell whenever US markets are open.

Route 2 — Indian Mutual Funds and ETFs with US Exposure

Alternatively, you can invest in Indian mutual funds or Fund of Funds that put your money into US markets without sending money abroad at all.

Certain funds let you invest in rupees through your existing demat account or mutual fund app. No LRS paperwork, TCS complications or foreign brokerage account required.

The trade-off is a slightly higher expense ratio and some of these funds periodically pause fresh investments when SEBI's overseas limit is reached. 

Route 3 — NSE IFSC (GIFT City)

Indian investors can buy unsponsored depository receipts of US companies listed on NSE IFSC in GIFT City, Gujarat. These are INR-accessible USD securities giving fractional exposure to around 50 large US companies without needing a foreign broker account.

TCS on Foreign Remittance.

When you send money abroad under LRS, your bank collects Tax Collected at Source. Up to ₹10 lakh in a financial year — no TCS. Anything above ₹10 lakh — 20% TCS on the amount exceeding that threshold.

The important thing to understand is that TCS is not an extra tax. It is money collected upfront that you adjust against your total tax liability when you file your ITR. If your tax for the year works out to ₹5 lakh and ₹2 lakh was already taken as TCS, you only pay the remaining ₹3 lakh.

For anyone investing smaller amounts, say under ₹3-4 lakh a year, the mutual fund route avoids TCS entirely and is usually the easier starting point.

Taxation on US Stock Gains

Tax treatment for US stocks is different from Indian equity and holding period is longer.

Capital gains: If you sell your US shares within 24 months, the gain is added to your income and taxed at your slab rate — which could be as high as 30%. Hold for longer than 24 months and the tax drops to a flat 12.5% without indexation.

Dividends: US companies withhold tax on dividends at source. Under the India-US Double Tax Avoidance Agreement (DTAA), the withholding rate is 25% for most individuals, claim this rate by submitting Form W-8BEN to your broker. Dividends are also taxable in India at your slab rate, but you can claim Foreign Tax Credit for the US tax already paid by filing Form 67 along with your ITR.

Disclosure: All foreign assets must be reported in Schedule FA of your ITR every year,  even if you made no gains that year.

Risks Worth Understanding

Currency risk: Your returns are in USD but your expenses are in INR. If the rupee strengthens against the dollar, your returns in rupee terms shrink. If it weakens which has been the historical trend, you get an additional tailwind.

Bringing money back is not complicated. Sell your holdings, convert dollars to rupees, transfer home. No approvals needed within the LRS limit.

One hard rule — RBI does not allow LRS money to be used for margin trading or derivatives on foreign exchanges. Stick to direct stocks and ETFs.

How to Start Investing in US Stocks from India

Step 1: Choose your route: direct US brokerage or Indian feeder fund.

Step 2: If going direct, open an account on a compliant platform.

Step 3: Link your Indian bank account. Your bank will handle the LRS remittance and collect any applicable TCS.

Step 4: Fund your account. The bank converts INR to USD and credits your brokerage account.

Step 5: Start investing. You can buy fractional shares, full shares, or US ETFs.

Step 6: File your ITR every year. Report foreign assets in Schedule FA and claim Foreign Tax Credit if applicable using Form 67.

Conclusion

Owning US stocks from India is no longer complicated. The LRS gives every Indian resident access to global markets legally and with a clear process.

If you are starting out — the mutual fund route is simpler. No foreign accounts, no TCS, just rupees going into a fund that does the work.

If you want actual ownership of individual US companies — the LRS direct route is the way to go. Just make sure you are on top of the tax filing, because that is where most people slip up.

Either way, the opportunity is available.