How to Invest in US Stocks from India (LRS, TCS, Taxes)

Indian residents can remit up to $250,000/year under LRS. Here is how TCS, forex spreads, US withholding tax and Indian capital-gains tax stack up.

By LetsInvest Research Desk · Updated 13 Sept 2026

Under the RBI's Liberalised Remittance Scheme (LRS), resident Indians may invest up to $250,000 per year abroad. Routes: international brokers (Interactive Brokers), Indian apps with US access (Groww, INDmoney), or US-focused feeder mutual funds/ETFs.

Costs that surprise beginners

TCS: 20% collected at source above ₹10 lakh/year remittance (adjustable against income tax, but a cash-flow hit).
Forex spread: 0.5–1.5% each way on most apps.
US dividend withholding: 25% flat for Indians.
Indian tax: US-stock gains are taxed as capital gains in India (short/long-term rules apply).

Our US investing hub compares routes once broker reviews go live.

Educational content, not financial advice. Tax rules change — confirm with a CA.

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