New to Globalise
- How do I open my account?
- How long does it take to open my account?
- How soon can I start investing?
- What are the documents required for opening an account with Globalise?
- Is there a minimum amount that I need to invest?
- Which stock markets are available on Globalise?
- How many securities are available on Globalise?
- How do I buy or sell securities?
Regulations & global investing
- Can investors from India invest in the US?
- What is the LRS?
- How much can I invest in the US?
- Can I invest in US mutual funds and ETFs?
- Can I buy derivatives or leveraged products through my Globalise account?
- How do fractional shares work?
- Do I get dividends and voting rights on fractional stocks?
- Is there a limit on maximum number of foreign securities to be held by an Indian Resident?
Funds Transfer & Trading
- How do I add money to my Globalise account?
- What documents do I need to transfer money out of India?
- How do I withdraw money back to my account?
- How is the forex rate and fee determined?
- Does Globalise provide any research support?
- Does Globalise give investing advice?
- What is a limit order?
- When to use limit order?
- What's a market order?
- What is a stop order?
Pricing and Charges
Safety and Security
- How secure is this?
- Where is my US investing account held?
- Who is the custodian of my account?
- What happens if Globalise goes down? What is the safety-net on my account?
- What is the insurance or protection on my account?
- Who owns the securities I have invested in?
- How can I verify ownership of my shares?
- As a Globalise customer investing in the US, where do I pay my taxes?
- How are my gains and earnings in the US markets taxed?
- What is the tax rate applied in India for my US investments?
- What exchange rate I should consider while filing my tax return?
- While calculating short-term and long-term capital gains, does the timing of 'withdrawal' to India matter?
- Which is the tax document that needs to be filed in India for reporting tax already paid in the US (for dividends)?
- Is there a tax on remittances from India?
- What reports am I required to file in India on my holdings or gains on foreign assets?
- What are the tax implications in India if I am a Non-Resident Indian (NRI) residing in any country other than USA?
- Can brokerage and other charges paid be claimed as a deduction for computing my capital gains tax in India?
How are my gains and earnings in the US markets taxed?
There is no Tax Deduction at Source (TDS) for your stock market gains in the US. When you sell an investment on which you have made a profit, the entire amount is sent to your brokerage cash account without any tax deductions. You will be required to pay capital gains taxes on these profits in India. If you held the investment for less than 24 months, you will have to pay short-term capital gains tax. If you held the investment for over 24 months, you will have to pay long-term capital gains tax. There is a 25% TDS on your dividend earnings. So, if you own 10 shares of a company, and the company pays a $10 per share dividend, you will receive $75 as earnings in your brokerage cash account (10 shares x $10 per share dividend = $100 total dividend. 25% TDS on $100 = $25 TDS, leaving net $75 cash). US and India have a Double Taxation Avoidance Agreement (DTAA), which means you will not be taxed twice on the same income. You be able to claim any TDS on your US earnings when filing your taxes in India. You will receive a W-8BEN form that will document the TDS deducted on your US earnings, which can be used when filing your taxes in India as proof that you have already paid taxes on that income.
If you have any further help understanding the taxation, please reach out to our team.
Disclaimer: This article is for informational purposes only. None of the contents of this article should be treated as tax advice. Please consult a qualified tax consultant or expert with your specific taxation situation for appropriate advice.