Investing in US stocks subjects Indian investors to taxation in both countries. Dividends are taxed at a flat 25% withholding rate in the US, but India offers Double Taxation Avoidance Agreement (DTAA) relief when filing returns. Capital gains are taxed only in India—at slab rates for short-term gains or 20% with indexation for long-term holdings. Investments are made under the Liberalised Remittance Scheme (LRS), which permits remittances up to $250,000 per year. All returns must be reported in Indian tax filings with annual disclosure to the RBI.