Investments in India Stock Market

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uday21

Registered Users (C)
Hi Guys,

This question might have been asked before but please bear with me.

If I make investments in the Indian stock mark and have capital gains then first of all are these capital gains taxable in the US an if yes then where do I report them.

Thanks
Uday
 
You need to pay tax either in India or the US.

It does not matter where as long as you declare it in either country.

This is because India and US have a dual taxation treaty whereby you only need to pay tax in one country.
 
Let me clarify somethings. I am a US permanent resident living in the US. I have a joint DMAt account with my father in law. Now If I have capital gains through this account what is my tax liability in the US. Please note that in India there is no capital gains tax if u hold the shares for more than a year..

Thanks
Uday
 
uday21 said:
If I make investments in the Indian stock mark and have capital gains then first of all are these capital gains taxable in the US an if yes then where do I report them.
Uday
Click to expand...


I'm not sure but I think it's Form 1116 for foreign source (instructions here or here). Otherwise, capital gains and losses (U.S. source) are reported on Schedule D, Capital Gains and Losses, and then transferred to line 13 of Form 1040 (instructions here). You may also want to check the IRS website or consult a good accountant for more details.

Disclaimer: Not a legal advice. Please use at your own risk. It is best to seek counsel from qualified and certified immigration attorneys.
 
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