Consolidating US stock tax documents for ITR filing
Every Indian resident who owns U.S. stocks must file ITR-2 or ITR-3, along with three additional schedules and Form 67. The biggest headache is not the tax math. It is about gathering the right U.S. stock tax documents for the ITR India filing before the July 31 deadline.
Missing even one document can mean lost foreign tax credits, incorrect disclosures, or penalties under the Black Money Act. This guide walks you through every document you need, where to find them, and how to keep them organised.
Broker statements you need to collect first
Your U.S. broker is the starting point for everything. You need three categories of statements from them before you touch the ITR portal.
The first is your broker's annual statement for tax purposes. This document lists all trades, dividend payments, interest credits, and corporate actions that occurred during the calendar year. Brokers like Interactive Brokers, Charles Schwab, and DriveWealth (used by Vested, INDmoney, and Winvesta) generate these by early February each year. Download and save the full annual activity report, not just the summary. You need individual trade details to compute capital gains under Indian FIFO rules.
The second is your account balance statement, showing the peak and closing values for the calendar year. Schedule FA requires both figures for each foreign brokerage account and for each stock held. Get the December 31 closing balance and identify the highest portfolio value during the year. Convert both to INR using the SBI TT Buying Rate on the relevant date.
The third is your dividend income detail — a line-by-line record of every dividend received, with dates, gross amounts (before U.S. withholding), and net amounts credited. This feeds directly into Schedule OS (Other Sources) in your ITR. Report the gross pre-tax dividend, not the net amount that landed in your account.
Keep all three documents in a dedicated folder labelled by financial year. You will reference them repeatedly across Schedules FA, FSI, TR, and CG.
Form 1042-S explained: Your most important single document
IRS Form 1042-S is the anchor of your entire Indian tax filing for U.S. stocks. It records all US-source income paid to non-resident aliens and the federal Tax withheld on that income. Without it, you cannot prove taxes were paid in the U.S. Without that proof, you cannot claim a foreign tax credit in India.
U.S. brokers must issue Form 1042-S by March 15 each year. For the 2025 calendar year, the statutory deadline is March 16, 2026 (since March 15 falls on a Sunday). Most brokers release it electronically by mid-February.
Here are the boxes that matter most. Box 1 contains the income code — code 06 means dividends from U.S. corporations. Box 2 shows gross income before any withholding. Box 3b shows the tax rate applied (25% under DTAA if your W-8BEN is valid, 30% if it expired). Box 7a shows the actual federal Tax withheld — this exact dollar amount becomes the basis for your Form 6 Tax Claim in India.
For Form 1042-S download, here is where to find it on major platforms. On Interactive Brokers, go to Client Portal, then Performance and Reports, then Tax Documents. On Schwab, navigate to Statements and Tax Forms and filter by tax year. On platforms such as Vested, INDmoney, or Winvesta, Form 1042-S is issued by the underlying U.S. broker-dealer (DriveWealth or Alpaca Securities) and is available in the tax documents section. Vested and INDmoney also provide pre-computed Form 67 data and schedule summaries.
To know more about the tax implications for Indian residents investing in the U.S. stock market (FY 2025-26), click on the link.
Bank remittance records for LRS compliance
Every rupee you sent abroad for U.S. stock purchases moved through the Liberalised Remittance Scheme. Your Indian bank created a paper trail for each transfer, and you need all of it.
Collect Form A2 for every outward remittance. This is the LRS declaration your bank certified when processing the transfer. It links each remittance to a specific purpose code (S0001 for equity investment abroad). After July 2024, the RBI mandates Form A2 for all cross-border remittances regardless of amount.
Next, gather your SWIFT confirmation slips. These show the actual amount transferred, the exchange rate applied, and the beneficiary details. They create the audit trail connecting your Indian bank debit to your U.S. brokerage credit.
Finally, collect Form 27D — the TCS certificate your bank issued for Tax Collected at Source on foreign remittances. TCS currently stands at 2Taxon investment remittances exceeding ₹10 lakh per financial year. This is not an extra tax. It is fully adjustable against your total tax liability. Verify every TCS amount against Form 26AS on the income tax portal before filing.
Store all bank remittance records for at least 6 years. The income tax department can go back that far during assessment proceedings.
Cost basis documentation and currency conversion
U.S. stocks are classified as unlisted foreign securities under Indian tax law. The holding period threshold is 24 months — hold longer,nger and you pay long-term capital gains tax at 12.5% flat (post-Budget 2024 change, effective July 23, 2024). Sell ea, earlier and short-term gains are taxed at your income slab rate.
The legally prescribed exchange rate for conversion is the SBI Telegraphic Transfer Buying Rate on the last day of the month preceding the transaction month. If you sold a stock on August 15, use the SBI TTBR as of July 31. If that date was a holiday, use the previous working day's rate. This rule comes from Rule 115 of the Income Tax Rules. Using Google's rate or the RBI reference rate will not hold up in assessment.
Indian tax law requires FIFO (First In, First Out) for matching lots. If you bought 100 shares in January at $10 and 50 more in March at $15, selling 120 shares splits the first 100 between January's lot and March's lot, with 20 going to March's lot. Each lot uses the SBI Tforfrom its own buy and sell months.
Build a master ledger in Excel or Google Sheets with these columns: ticker, buy date, quantity, buy price in USD, SBI TTBR rate for buy month, buy cost in INR, sell date, sell price in USD, TTBR rate for sell month, sale proceeds in INR, and holding period in days. Maintain separate tabs for dividends, DRIP reinvestments, and capital gains.
Watch out for corporate actions. Stock splits do not trigger Tax — they divide your per-share cost basis by the split ratio. Bonus shaTax has zero acquisition cost for Indian tax purposes. DRIP (Dividend Reinvestment Plan) purchases create separate tax lots, and the reinvested dividend is still taxable as income in the year it was received.
Foreign tax credit proofs and Form 67
The India-US Double Taxation Avoidance Agreement protects you from paying Tax twice on the same dividend income. Article 10 of the DTAA allows the U.S. to withhold up to 25% on dividends paid to Indian residents. India then grants you a credit for that U.S. tax against your Indian tax liability.
To claim this credit, you need three things. First, Form 1042-S proving the U.S. tax was actually withheld. Second, Form 67 filed electronically on the income tax portal before you submit your ITR. Third, correct entries in Schedule FSI (Foreign Source Income) and Schedule TR (Tax Relief) in your ITR.
The credit equals the lower of the Indian Tax payable on that foreign income or the actual foreign Tax paid. If your Indian tax bracket is 5% and U.S. withholding is 25%, you permanently lose the difference. There is no carry-forward for excess foreign tax credit. Investors in higher brackets (20% or 30%) recover most or all of the U.S. withholding.
File Form 67 before submitting your ITR. The portal will not process your FTC claim without it. Attach Form 1042-S as supporting proof. Fill out Schedule TR, specifying Section 90 relief (for DTAA countries like the U.S.). Organising want wanta guide to taon xes Uon S stocks in I? Clicklick the link.
Organising your documents for a clean filing
A consolidated tax statement from your U.S. broker is the foundation, but Indian schedules require data in a different format than U.S. brokers provide. You must bridge the gap yourself or use a platform that does it for you.
Start your document checklist for ITR filing with these six folders: broker statements, Form 1042-S, bank remittance records, cost basis workbook, SBI TTBR rate archive, and Form 26AS/AIS downloads. Label each folder with the assessment year (AY 2026-27 for FY 2025-26 income).
Several platforms significantly reduce manual labour. Vested Finance provides pre-computed capital gains reports and Form 67 data with amounts already converted to INR using SBI TTBR rates. INDmoney offers similar automation and integrates with ClearTax for direct data upload. Interactive Brokers provides the most comprehensive raw data, but does not convert it to Indian formats.
Track SBI TTBR rates monthly throughout the year rather than scrambling to find historical rates at filing time. Save the rate from the last business day of every month. The open-source GitHub project sbi-fx-ratekeeper archives daily rates in CSV format if you need to backfill gaps.
Digital filing tips that save hours
Download all broker documents by March. The U.S. tax document cycle ends in mid-March, and the Indian ITR filing opens in April. Waiting until July creates unnecessary panic.
Map every transaction to the correct period. U.S. broker statements follow the January-to-December calendar year. Indian ITR uses the April-to-March financial year. A dividend received in February 2026 falls in the U.S. 2025 tax year but Indian FY 2025-26 — both align. But a dividend in January 2 falls in the U.S. tax year 2024 and the Indian FY 2024. Cross-reference the documents for the English entry.
Always use ITR-2 or ITR-3. The simpler ITR-1 and ITR-4 forms do not contain Schedule FA, FSI, or TR. Filing the wrong form with foreign assets is treated as a defective return.
Report gross dividends in Schedule OS. A common mistake is reporting the net post-withholding amount. The income tax department expects the full pre-tax figure, with FTC claimed separately through Form 67 and Schedule TR.
Budget 2026 introduced FAST-DS — a six-month disclosure scheme for small taxpayers who inadvertently missed foreign asset reporting in past years. Category B covers cases where taxes were paid, but Schedule FA was left incomplete, with a ₹1 lakh fee for assets up to ₹5 crore. The prosecution threshold under the Black Money Act has also risen — movable foreign assets up to ₹20 lakh now face no prosecution risk. Both changes make 2026 a good year to clean up past omissions while filing the current year correctly.
Your complete document checklist for ITR filing boils down to six categories: broker annual statement, element tax records, Form 1042-S, bank LRS proofs, cost basis workbook with SBI TTBR conversions, Form 26AS/AIS for TCS verification, and Form 67 filed before the ITR. Collect them systematically, organise them by assessment year, and the actual filing becomes the easy part.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
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Invest in 11,000+ US stocks & ETFs
Table of Contents
Every Indian resident who owns U.S. stocks must file ITR-2 or ITR-3, along with three additional schedules and Form 67. The biggest headache is not the tax math. It is about gathering the right U.S. stock tax documents for the ITR India filing before the July 31 deadline.
Missing even one document can mean lost foreign tax credits, incorrect disclosures, or penalties under the Black Money Act. This guide walks you through every document you need, where to find them, and how to keep them organised.
Broker statements you need to collect first
Your U.S. broker is the starting point for everything. You need three categories of statements from them before you touch the ITR portal.
The first is your broker's annual statement for tax purposes. This document lists all trades, dividend payments, interest credits, and corporate actions that occurred during the calendar year. Brokers like Interactive Brokers, Charles Schwab, and DriveWealth (used by Vested, INDmoney, and Winvesta) generate these by early February each year. Download and save the full annual activity report, not just the summary. You need individual trade details to compute capital gains under Indian FIFO rules.
The second is your account balance statement, showing the peak and closing values for the calendar year. Schedule FA requires both figures for each foreign brokerage account and for each stock held. Get the December 31 closing balance and identify the highest portfolio value during the year. Convert both to INR using the SBI TT Buying Rate on the relevant date.
The third is your dividend income detail — a line-by-line record of every dividend received, with dates, gross amounts (before U.S. withholding), and net amounts credited. This feeds directly into Schedule OS (Other Sources) in your ITR. Report the gross pre-tax dividend, not the net amount that landed in your account.
Keep all three documents in a dedicated folder labelled by financial year. You will reference them repeatedly across Schedules FA, FSI, TR, and CG.
Form 1042-S explained: Your most important single document
IRS Form 1042-S is the anchor of your entire Indian tax filing for U.S. stocks. It records all US-source income paid to non-resident aliens and the federal Tax withheld on that income. Without it, you cannot prove taxes were paid in the U.S. Without that proof, you cannot claim a foreign tax credit in India.
U.S. brokers must issue Form 1042-S by March 15 each year. For the 2025 calendar year, the statutory deadline is March 16, 2026 (since March 15 falls on a Sunday). Most brokers release it electronically by mid-February.
Here are the boxes that matter most. Box 1 contains the income code — code 06 means dividends from U.S. corporations. Box 2 shows gross income before any withholding. Box 3b shows the tax rate applied (25% under DTAA if your W-8BEN is valid, 30% if it expired). Box 7a shows the actual federal Tax withheld — this exact dollar amount becomes the basis for your Form 6 Tax Claim in India.
For Form 1042-S download, here is where to find it on major platforms. On Interactive Brokers, go to Client Portal, then Performance and Reports, then Tax Documents. On Schwab, navigate to Statements and Tax Forms and filter by tax year. On platforms such as Vested, INDmoney, or Winvesta, Form 1042-S is issued by the underlying U.S. broker-dealer (DriveWealth or Alpaca Securities) and is available in the tax documents section. Vested and INDmoney also provide pre-computed Form 67 data and schedule summaries.
To know more about the tax implications for Indian residents investing in the U.S. stock market (FY 2025-26), click on the link.
Bank remittance records for LRS compliance
Every rupee you sent abroad for U.S. stock purchases moved through the Liberalised Remittance Scheme. Your Indian bank created a paper trail for each transfer, and you need all of it.
Collect Form A2 for every outward remittance. This is the LRS declaration your bank certified when processing the transfer. It links each remittance to a specific purpose code (S0001 for equity investment abroad). After July 2024, the RBI mandates Form A2 for all cross-border remittances regardless of amount.
Next, gather your SWIFT confirmation slips. These show the actual amount transferred, the exchange rate applied, and the beneficiary details. They create the audit trail connecting your Indian bank debit to your U.S. brokerage credit.
Finally, collect Form 27D — the TCS certificate your bank issued for Tax Collected at Source on foreign remittances. TCS currently stands at 2Taxon investment remittances exceeding ₹10 lakh per financial year. This is not an extra tax. It is fully adjustable against your total tax liability. Verify every TCS amount against Form 26AS on the income tax portal before filing.
Store all bank remittance records for at least 6 years. The income tax department can go back that far during assessment proceedings.
Cost basis documentation and currency conversion
U.S. stocks are classified as unlisted foreign securities under Indian tax law. The holding period threshold is 24 months — hold longer,nger and you pay long-term capital gains tax at 12.5% flat (post-Budget 2024 change, effective July 23, 2024). Sell ea, earlier and short-term gains are taxed at your income slab rate.
The legally prescribed exchange rate for conversion is the SBI Telegraphic Transfer Buying Rate on the last day of the month preceding the transaction month. If you sold a stock on August 15, use the SBI TTBR as of July 31. If that date was a holiday, use the previous working day's rate. This rule comes from Rule 115 of the Income Tax Rules. Using Google's rate or the RBI reference rate will not hold up in assessment.
Indian tax law requires FIFO (First In, First Out) for matching lots. If you bought 100 shares in January at $10 and 50 more in March at $15, selling 120 shares splits the first 100 between January's lot and March's lot, with 20 going to March's lot. Each lot uses the SBI Tforfrom its own buy and sell months.
Build a master ledger in Excel or Google Sheets with these columns: ticker, buy date, quantity, buy price in USD, SBI TTBR rate for buy month, buy cost in INR, sell date, sell price in USD, TTBR rate for sell month, sale proceeds in INR, and holding period in days. Maintain separate tabs for dividends, DRIP reinvestments, and capital gains.
Watch out for corporate actions. Stock splits do not trigger Tax — they divide your per-share cost basis by the split ratio. Bonus shaTax has zero acquisition cost for Indian tax purposes. DRIP (Dividend Reinvestment Plan) purchases create separate tax lots, and the reinvested dividend is still taxable as income in the year it was received.
Foreign tax credit proofs and Form 67
The India-US Double Taxation Avoidance Agreement protects you from paying Tax twice on the same dividend income. Article 10 of the DTAA allows the U.S. to withhold up to 25% on dividends paid to Indian residents. India then grants you a credit for that U.S. tax against your Indian tax liability.
To claim this credit, you need three things. First, Form 1042-S proving the U.S. tax was actually withheld. Second, Form 67 filed electronically on the income tax portal before you submit your ITR. Third, correct entries in Schedule FSI (Foreign Source Income) and Schedule TR (Tax Relief) in your ITR.
The credit equals the lower of the Indian Tax payable on that foreign income or the actual foreign Tax paid. If your Indian tax bracket is 5% and U.S. withholding is 25%, you permanently lose the difference. There is no carry-forward for excess foreign tax credit. Investors in higher brackets (20% or 30%) recover most or all of the U.S. withholding.
File Form 67 before submitting your ITR. The portal will not process your FTC claim without it. Attach Form 1042-S as supporting proof. Fill out Schedule TR, specifying Section 90 relief (for DTAA countries like the U.S.). Organising want wanta guide to taon xes Uon S stocks in I? Clicklick the link.
Organising your documents for a clean filing
A consolidated tax statement from your U.S. broker is the foundation, but Indian schedules require data in a different format than U.S. brokers provide. You must bridge the gap yourself or use a platform that does it for you.
Start your document checklist for ITR filing with these six folders: broker statements, Form 1042-S, bank remittance records, cost basis workbook, SBI TTBR rate archive, and Form 26AS/AIS downloads. Label each folder with the assessment year (AY 2026-27 for FY 2025-26 income).
Several platforms significantly reduce manual labour. Vested Finance provides pre-computed capital gains reports and Form 67 data with amounts already converted to INR using SBI TTBR rates. INDmoney offers similar automation and integrates with ClearTax for direct data upload. Interactive Brokers provides the most comprehensive raw data, but does not convert it to Indian formats.
Track SBI TTBR rates monthly throughout the year rather than scrambling to find historical rates at filing time. Save the rate from the last business day of every month. The open-source GitHub project sbi-fx-ratekeeper archives daily rates in CSV format if you need to backfill gaps.
Digital filing tips that save hours
Download all broker documents by March. The U.S. tax document cycle ends in mid-March, and the Indian ITR filing opens in April. Waiting until July creates unnecessary panic.
Map every transaction to the correct period. U.S. broker statements follow the January-to-December calendar year. Indian ITR uses the April-to-March financial year. A dividend received in February 2026 falls in the U.S. 2025 tax year but Indian FY 2025-26 — both align. But a dividend in January 2 falls in the U.S. tax year 2024 and the Indian FY 2024. Cross-reference the documents for the English entry.
Always use ITR-2 or ITR-3. The simpler ITR-1 and ITR-4 forms do not contain Schedule FA, FSI, or TR. Filing the wrong form with foreign assets is treated as a defective return.
Report gross dividends in Schedule OS. A common mistake is reporting the net post-withholding amount. The income tax department expects the full pre-tax figure, with FTC claimed separately through Form 67 and Schedule TR.
Budget 2026 introduced FAST-DS — a six-month disclosure scheme for small taxpayers who inadvertently missed foreign asset reporting in past years. Category B covers cases where taxes were paid, but Schedule FA was left incomplete, with a ₹1 lakh fee for assets up to ₹5 crore. The prosecution threshold under the Black Money Act has also risen — movable foreign assets up to ₹20 lakh now face no prosecution risk. Both changes make 2026 a good year to clean up past omissions while filing the current year correctly.
Your complete document checklist for ITR filing boils down to six categories: broker annual statement, element tax records, Form 1042-S, bank LRS proofs, cost basis workbook with SBI TTBR conversions, Form 26AS/AIS for TCS verification, and Form 67 filed before the ITR. Collect them systematically, organise them by assessment year, and the actual filing becomes the easy part.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
Ready to earn on every trade?
Invest in 11,000+ US stocks & ETFs
