Tax liability on the capital gains from US stocks

As an Indian citizen, dividends received from a US stock will be taxed at the rate of 25%, the rest will be credited to you. However, owing to the DTAA signed between India and the US, the tax that has been deducted in the US can be claimed as foreign tax credits against the tax liability in India.

When it comes to capital gain from US shares, no taxes are levied on profit or gain incurred at the time of selling stocks in the US. But contrary in India, capital gain income is taxable as per Indian tax laws.