US Stock Tax Calculator for Indian Residents

Gains are taxed in rupees. A holding of more than 24 months is long term and taxed at a flat 12.5%, with no indexation. Anything held 24 months or less is short term, added to your income and taxed at your slab rate. The ₹1.25 lakh exemption does not apply, because it covers only listed Indian equity on which STT is paid. Dividends are added to your income at your slab rate. Add 4% cess, and a surcharge if your income is above ₹50 lakh.

The State Bank of India's telegraphic transfer buying rate on the last day of the month before the month of the transaction, under Rule 115 until 31 March 2026 and Rule 206 of the Income-tax Rules 2026 since. For a sale, that means the month before the sale month, not the day of the sale. For dividends it is the month before the dividend was paid, and for foreign tax the month before it was deducted. The rule is silent on the purchase cost: chartered accountants commonly apply the same convention to the month before the purchase, while some filers convert only the dollar gain once at the sale-month rate. The calculator lets you choose. Schedule FA follows different dates.

Yes. Capital gains are worked out in rupees, so a falling rupee adds to your gain even if the shares barely moved. Shares bought for $10,000 at ₹82.32 and sold for $15,000 at ₹95.42 show a gain of ₹6.08 lakh: ₹4.77 lakh from the shares and ₹1.31 lakh from the rupee. It also works the other way round: a small loss in dollars can be a gain in rupees.

After more than 24 months, not 12. The 12-month rule is only for securities listed on a recognized stock exchange in India, and US-listed shares and ETFs are not. Exactly 24 months is still short term; long term starts the next day. Count from the purchase date to the trade date on your contract note, and if you are selling on the first possible day, waiting a day or two removes any doubt about the count.

A short-term loss can be set off against any capital gain, short or long term. A long-term loss can be set off only against long-term gains. What is left carries forward for 8 years, but only if you file your return by its due date. A capital loss cannot be set off against dividends or salary. These rules apply across all your capital assets, including Indian shares and funds, which this calculator does not model, so enter earlier losses under “Dividends and earlier losses” if you have them.

Indian law prescribes first-in, first-out only for securities held in an Indian depository. For shares in an overseas brokerage account it is the usual convention rather than a statutory rule, and commentary is divided. Enter your sales as your broker's gain and loss report lists them, lot by lot, and keep that report with your records.

The US withholds 25% under the India–US treaty if you have a Form W-8BEN on file, and 30% if you do not. India taxes the whole dividend at your slab rate and gives a credit for the US tax, but only up to the 25% treaty rate and only up to the Indian tax on that income. A low slab therefore wastes part of the US tax: under the ₹12 lakh rebate there is no Indian tax to credit against at all. Claim the credit on Form 44 (Form 67 for FY 2025-26), with Schedules FSI and TR. For the 2026-27 tax year the form is due within 12 months of the year's end, and it needs an accountant's verification if the foreign tax for the year is ₹1 lakh or more.

The rule limits the credit to the Indian tax payable on that income but does not say how to measure it. The usual practice applies the average rate of tax on your whole return to the dividends. A more favorable reading uses the tax the dividends add at your slab, which gives a larger credit, but we found no ruling that supports it. The calculator shows both so you can see the difference, and defaults to the average rate.

Not if you are a resident of India who spends fewer than 183 days in the US in the year. The US taxes a non-resident's gains on stock sales only above that, and brokers do not withhold tax on gains. The treaty does not change this. If you spend long periods in the US, for example on an H-1B or L-1 visa, check your position, because every day counts toward the 183.

Use ITR-2, or ITR-3 if you have business income; ITR-1 is not allowed once you hold foreign assets. Report each sale in Schedule CG and dividends in Schedule OS. List every foreign holding in Schedule FA, including shares sold during the year, even if you had no income from them. For the returns filed in 2026 it covers the calendar year ending 31 December; check the period when the 2026-27 form is released. Report foreign income and tax in Schedules FSI and TR. The return for the 2026-27 tax year is due on 31 July 2027. The Finance Act 2026 also created a one-time scheme for small taxpayers to disclose foreign assets they left out, and secondary reports say it runs from 16 August to 31 December 2026; check the Income Tax Department's notification for the terms before relying on it.