💬 TAX AMA: Got Questions on Filing Taxes for US Stocks? Ask Away!

US Market & Sectors
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It’s tax season in India, and if you’ve invested in US stocks via Vested, you probably have a few tax-time worries like:

  • How to report US stock capital gains in ITR?
  • Are dividends from US companies taxable in India and the US?
  • What is Form 67 and how do I claim DTAA benefits?

We’re hosting a TAX AMA (Ask Me Anything) with a certified tax expert to help you get clear, actionable answers — right here in this thread.

What to do:
Just comment your questions below. We’ll get them answered and shared with everyone here.

Let’s help you file stress-free and stay 100% compliant.
Deadline’s ticking — ask now!

Just a heads-up: The Vested team will handle general tax queries, but anything complex or case-specific will be answered directly by a tax expert during the AMA. That way, you get the most accurate advice

— Team Vested

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Where can I get the TCS certificate? 5.5k TCS was levied on my transaction in March 2025.

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What all documents we need to submit while filing ITR?

I have not sold any shares but i have got dividends. Do i need to show that?

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1 On how much profit booking amount in a financial year tax is applicable ?
2 How much amount is tax free after how much time from purchasing equity/etf?
3 Do I need to pay tax after taking amount return in Indian Bank account?

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The question is for time range 1/4/2025 to 31/3/2026 — about STCG on US stocks for Indian residents. Now that the tax is Zero for income below to 12,00,000 — can we make use of this to make more profit in US stocks?

Example: let’s imagine my annual taxable income comes up to 5 lakh and I make for the sake of this case, 5 lakh profit with my US stocks (bought and sold within 2 years). Now my total taxable income is 10L which is less than 12 L. And US STCG is taxed on slab rate. As the income below two lakh is exempted, will this five lakh profit also have zero tax?

PS: I understand the 87A Rebate doesn’t work for Special Tax Rates — stocks listed in Indian Equity Market, as said in 111A and 112A

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Hi

I have been paid dividend out of Invested ETF,s , indexes funds and Stocks and tax is deducted at source . Do i need to declar under tax filling at India .

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I would like to understand more on the US taxation on the amounts I am earning as profits from the US shares. In my case, I am reinvesting the amounts in other shares when the opportunities come. I declare this asset in my India tax filing but want to know if I have to declare the same in the US also. Please guide

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Hi,

For ITR filing this year, I need consolidated finance statement. How can I get it?

There are monthly statements only available on the Vested application.
Please guide.

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Hi,
My question is for tax 2024-25 and 2025-26(next filing) both.

I am a part-time working professional / student: my income after all tax benifit comes under 0-5% tax slab.

1)In India 1.25L is extempted for stock income in a financial year.
Is this benifits includes US stocks also?

  1. what will be the income tax slab for me for US Stocks profit / Dividend, if I am under 5% or 10% tax zone.

  2. Do we need to declare US stocks holding as well? Or just when we sell we declare the profit?.

  3. how to claim if dividend received from US stocks is already tax cut.

  4. is holding US stocks for LTCG is beneficial or STCG.

Thanks

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hi there…this is a TAX-AMA question.

Hypothetical Case Given : I am a US citizen with PIO card permanently resident in India and have filed tax here for nearly 3 decades. Never filed tax nor have any income in the US. I have enrolled in Vested from India using US Citizen KYC and attached my SSN + PIO Card + PAN Card & Adhaar Card.

Ques 1 : In this case, will my income/ P&L be considered in India or the US given that we have a DTAA between our countries. Will I need to file a W9 instead of a W8 ? Will i have to file Form 1099 going forward ?

Ques 2 : By definition my dividend income (shares/ETF/MF) HAS to be taxed in the US at source, will i be able to set this off against my Vested income in India under the DTAA ?

Thank you

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I’ve received some dividend from my holding of which tax has been deducted already, do I need to disclose them as well in India while filing ITR this year ?
Also how about on selliing an holding with a loss help me in reduce my taxation in India, does it comes under capital gains set off with my indian holdings ?

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I only see questions here. Someone from vested going to answer this. Or people in community going to help each other. I’m tracking this forum for some time now. Was expecting answers on dividends received for etf for income tax return filing.

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Hey @Vikash_Swift_21

For tax filing related to US stock investments in India, here are the key documents and schedules you will need:

  1. Capital Gains Reporting - This is relevant if you have sold any shares during the financial year.
  2. Reporting of other income received from US Stocks - Dividends, interest on idle cash, and securities lending income (if applicable).

Apart from these, the following schedules might be relevant:

  1. Schedule FA: This needs to be filed even if there are no capital gains or no other income during the reporting period, as it captures your foreign assets.
  2. Schedule FSI: This schedule reports your foreign-sourced income - a summary of capital gains, as well as other income.
  3. Schedule TR and Form 67: The dividend and securities lending income have a withholding in the US. You can file a refund for the same in India using these forms, as the US and India have a DTAA.

All of these documents and schedules are generated for you by Vested every financial year, and can be accessed from Profile → Tax Documents.

Hope this helps! Feel free to send us a follow-up in case of any other queries. Happy Investing!

P.S. All of these details are informational in nature. Please consult a qualified CA or tax advisor to validate these details before filing your ITR. Thank you!

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Hi @Manivannan_Pixel_578

Yes, you need to declare your US stocks holdings and file Schedule FA. Additionally, you need to report the dividend income received from US securities, and interest from idle cash or any lent out securities, if applicable, under other income. If you wish to take a refund for the dividend tax withheld in the US in India (under DTAA), you will need to file Schedule TR and Form 67.

Hope this helps! Please let us know in case of any other queries. Cheers!

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Hello @VIKAS_Nexus_953

It’s great that you are filing details of your US stock holdings - Schedule FA is relevant in this scenario!

In your Indian income tax filing, you also need to declare the profit/loss you make from selling US stocks (both long-term and short-term capital gain/loss). This needs to be done irrespective of whether you are using the funds to repurchase other securities or the funds are remaining idle.

Along with this, any dividend, idle cash interest or securities lending interest also needs to be filed in your ITR.

Please refer to the tax documents generated for FY 2024-25 by Vested for your account. You can locate them under Profile → Tax Documents. Please write to us at help@vestedfinance.co in case you are unable to locate them or facing any error.

Cheers!

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Hey @Saurabh_Axis_995!

Vested generates all of the tax documents needed for ITR filing in India. You can locate the tax documents generated for you under Profile → Tax Documents → FY 2024-2025 on the Vested web platform / mobile app. The documents include a capital gains summary, details of other income received, and the necessary schedules needed for ITR filing!

Please write to us at help@vestedfinance.co in case you are unable to locate them or are facing any errors.

Cheers!

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Thanks for the reply. I only started making us investments through vested in this financial year only. I would also like to know if I need to inform that I’m making investments like these when filing for last year’s ITR. I hope you got it.