Investing in US stocks from India involves understanding both US and Indian tax implications. Here’s a simplified overview:

1. Taxation in the US
– **Dividend Income:** A flat 25% withholding tax is applied by the US on dividends received from US stocks. This tax is deducted at the source.
– **Capital Gains:** The US does not levy a tax on capital gains for non-resident Indians (NRIs).
2. Taxation in India
– **Dividend Income:** Dividends from US stocks are taxed at your applicable income tax slab rate in India. However, the 25% tax withheld by the US can be claimed as a Foreign Tax Credit (FTC) under the Double Taxation Avoidance Agreement (DTAA) between India and the US.
– **Capital Gains:**
– **Short-term Capital Gains (STCG):** If you hold the stocks for less than 24 months, gains are added to your income and taxed at your applicable income tax slab rate.
– **Long-term Capital Gains (LTCG):** If you hold the stocks for more than 24 months, gains are taxed at 20% with the benefit of indexation.

### Example:
Suppose you receive $100 as a dividend:
1. The US withholds $25 (25% of $100) as tax.
2. In India, if your tax slab rate is 30%, you owe $30 as tax on the $100 dividend.
3. You can claim a credit of $25 (the tax already paid in the US), so you only need to pay an additional $5 in India.

Important Points:
– **Double Taxation Avoidance Agreement (DTAA):** This allows you to claim credit for taxes paid in the US against taxes payable in India.
– **Foreign Tax Credit (FTC):** Helps avoid double taxation.
– **Form 67:** Required to claim FTC in India.

It’s advisable to consult with a tax professional for precise calculations and compliance with the latest regulations.