Any profits earned from selling US stocks are subject to capital gains tax in India. If the stocks are held for less than 24 months, they are considered short-term capital gains and taxed at the individual’s applicable income tax rate. If held for more than 24 months, they are considered long-term capital gains and taxed at a flat rate of 20% after indexation.

Foreign Exchange Fluctuation: Any gains arising from foreign exchange rate fluctuations between the time of purchase and sale of US stocks may also be taxable in India. Foreign Tax Credit: India has Double Taxation Avoidance Agreements (DTAA) with several countries, including the United States. Under DTAA, investors may be able to claim a foreign tax credit in India for any taxes paid in the US on their investment income.
Reporting Requirements: Indian residents investing in US stocks are required to report their foreign assets and income in their tax returns, including details of investments, gains, and any foreign bank accounts held.