How to file US stock income in your Indian ITR: Step-by-Step
If you hold even one share of Apple, Tesla, or any US-listed company, you cannot use ITR-1. Indian tax law requires you to report foreign assets and income using specific schedules, which are supported only by ITR-2 and ITR-3. Failure to make these disclosures can trigger penalties of up to ₹10 lakh per year under the Black Money Act.
This guide walks you through every schedule, every rate, and every step you need to know about how to file US stock income ITR India for AY 2025-26 and AY 2026-27.
Which ITR form to use: ITR-2 vs ITR-3
The choice between ITR-2 vs ITR-3 US stocks depends entirely on whether you earn business or professional income.
Use ITR-2 if you are salaried, earn capital gains from US stocks, receive dividends, and hold RSUs or ESOPs. This form includes Schedule CG, Schedule OS, Schedule FA, Schedule FSI, and Schedule TR. Most salaried employees at companies like Google, Amazon, or Infosys with US stock grants should file ITR-2.
Switch to ITR-3 only if you also earn business or professional income alongside your US stock holdings. Freelancers, consultants, or individuals whose frequent trading qualifies as speculative business income must use ITR-3. Both forms support identical schedules for foreign asset and income reporting.
ITR-1 (Sahaj) and ITR-4 (Sugam) do not include Schedule FA. You cannot use them if you hold any foreign asset, regardless of its value. Even if your total foreign income is zero and you hold a dormant US brokerage account, ITR-1 is disqualified.
A common mistake among salaried employees receiving RSUs is filing ITR-1 when their employer has already deducted TDS on their salary. The moment you hold vested US shares, Schedule FA is triggered, and ITR-2 becomes mandatory.
Schedule FA requirements: Foreign asset reporting with no threshold
Schedule FA is the mandatory foreign asset disclosure schedule. Every Resident and Ordinarily Resident (ROR) taxpayer must report all foreign assets held at any time during the calendar year — January 1 to December 31 — not the financial year.
This calendar year distinction catches many filers off guard. For AY 2026-27 (FY 2025-26), you must report assets held between January 1, 2025, and December 31, 2025.
There is no minimum value threshold. A single fractional share worth ₹500 requires the same disclosure as a ₹50 lakh portfolio. Even zero-balance brokerage accounts and stocks sold mid-year must appear in Schedule FA if held at any point during the calendar year.
For US stock investors, two tables matter most. Table A2 captures your foreign brokerage account details — institution name, account number, peak balance, and closing balance. Table A3 covers individual equity holdings — company name, acquisition date, initial value, peak value during the year, closing value, and any income earned.
Convert all values to INR using the SBI Telegraphic Transfer Buying Rate (TTBR) on the relevant dates. The foreign asset reporting deadline aligns with your ITR filing date — July 31, 2026, for most individuals filing AY 2026-27.
Penalties under the Black Money Act remain steep. Non-disclosure of foreign assets attracts a fine of ₹10 lakh per assessment year. Willful evasion can result in imprisonment for three to ten years. However, a 2024 relaxation exempts penalties when undisclosed movable foreign assets total ₹20 lakh or less in a financial year.
Schedule FSI for foreign income: Reporting dividends and capital gains
Schedule FSI (Foreign Source Income) requires a line-by-line breakdown of every type of foreign income you earned. For each entry, you must provide the country code (US = 840), your taxpayer identification number, gross income in INR, and foreign tax paid.
Report capital gains from US stocks and dividend income separately in Schedule FSI. Each income type maps to a specific DTAA article. Dividends fall under Article 10 of the India-US treaty, while capital gains come under Article 13. Select Section 90 as the basis for relief, since India has a DTAA with the United States.
The gross income amounts in Schedule FSI must match what you report in the corresponding head schedules. Capital gains should match Schedule CG entries, and dividend income should match Schedule OS entries. Any mismatch will trigger a validation error on the e-filing portal. The portal cross-checks these figures automatically during the validation step before submission.
Schedule TR for tax relief: Claiming your foreign tax credit
Schedule TR (Tax Relief) summarises your Foreign Tax Credit (FTC) claim country-wise. It pulls data from Schedule FSI and calculates the credit you can claim against your Indian tax liability.
The FTC equals the lower of the US tax actually paid on that income and the Indian tax attributable to the same income. This comparison is performed separately for each income source: dividends, FTC, and capital gains. FTC is computed independently.
Understanding the interplay between the Schedule, the FA Schedule, and the FSISchedule TR is critical. Schedule FA discloses the asset, Schedule FSI reports the income earned from it, and Schedule TR claims credit for foreign taxes already paid. All three must be consistent and cross-referenced.
Capital gains reporting: Rates after Budget 2024
US stocks are classified as unlisted shares under Indian tax law because they are not listed on NSE or BSE. This classification determines your holding period threshold and applicable tax rate.
Short-term capital gains (STCG): If you sell within 24 months of purchase, the gains are added to your total income and taxed at your applicable slab rate. Under the new tax regime, this could be anywhere from 5% to 30%.
Long-term capital gains (LTCG): If you hold for 24 months or more, the gains attract a flat 12.5% tax under Section 112. Budget 2024 reduced this rate from 20% effective July 23, 2024, and simultaneously removed the indexation benefit for foreign stocks.
The ₹1.25 lakh annual LTCG exemption under Section 112A does not apply to US stocks. That exemption covers only Indian listed equity where STT is paid.
For RSUs, the holding period starts from the vesting date, not the grant date. The perquisite value at vesting is taxed as salary income, while any subsequent gain or loss from sale goes into Schedule CG. Convert both the cost basis and sale proceeds to INR using the SBI TTBR on the applicable dates.
Budget 2025 introduced a relief measure: long-term capital losses incurred until March 31, 2026, can be offset against short-term capital gains from AY 2026-27 onward. Budget 2026 kept the 12.5% LTCG rate and slab-based STCG rate completely unchanged.
For a detailed breakdown of all applicable rates and exemptions, read our guide on tax implications for Indian residents investing in US stocks.
Dividend income reporting: How DTAA prevents double taxation
The US withholds tax on dividends paid to Indian investors. The default withholding rate is 30%, but this drops to 25% if you have filed Form W-8BEN with your US broker.
In India, report the gross dividend (before US withholding) under "Income from Other Sources" in Schedule OS. Never enter the net amount received — this is one of the most common filing errors.
The India-US DTAA then prevents full double taxation. If your Indian slab rate is 30% and the US withheld 25%, you pay only an extra 5% in India after claiming the FTC. However, if your Indian rate is below 25%, the excess US withholding is an irrecoverable cost.
Always file Form W-8BEN with your broker to ensure the reduced 25% rate applies instead of the default 30%.
Learn more about dividend withholding and DTAA credit calculations in our complete guide to understanding taxation on US stocks in India.
Step-by-step filing guide on the e-filing portal
Step 1 — Log in and start your return. Visit the income tax e-filing portal at eportal.incometax.gov.in. Navigate to e-File → Income Tax Returns → File Income Tax Return. Select the Assessment Year and choose ITR-2.
Step 2 — Select applicable schedules. Tick Schedule CG, Schedule OS, Schedule FA, Schedule FSI, and Schedule TR. Personal information will auto-populate from your Annual Information Statement (AIS).
Step 3 — Fill Schedule CG for capital gains. Enter US stock sales under Item A5 (STCG on assets other than listed Indian equity) or Item B9 (LTCG on unlisted shares). Provide purchase date, sale date, cost of acquisition in INR, and sale consideration in INR.
Step 4 — Fill Schedule OS for dividends. Enter the gross dividend amount under Item 1a. Use the SBI TTBR on the last day of the month preceding the dividend payment date for currency conversion.
Step 5 — Complete Schedule FA. Fill Table A2 with your brokerage account details and Table A3 with individual stock holdings. Remember this schedule follows the calendar year, not the financial year.
Step 6 — Complete Schedule FSI and Schedule TR. Enter the US country code (840), gross income amounts, foreign tax paid, and the applicable DTAA articles. Schedule TR will auto-compute the FTC summary.
Step 7 — File Form 67 before submitting your ITR. Navigate to e-File → Income Tax Forms → Form 67. Enter details of foreign income and tax paid. Upload supporting documents, including Form 1042-S from your US broker. E-verify the form.
Step 8 — Submit and verify your ITR. Review Part B-TTI for tax computation. Pay any self-assessment tax due through Challan 280. Validate and e-verify using Aadhaar OTP or net banking.
All currency conversions must use the SBI TTBR on the last day of the month preceding the transaction month, as prescribed under Rule 115. Maintain broker statements and conversion records for at least seven years.
Key deadlines you must not miss.
The original ITR due date for most individuals is July 31 of the assessment year. For AY 2026-27, this falls on July 31, 2026.
If you miss the original deadline, you can still file a belated return for US stocks in India by December 31, 2026. However, late filing attracts a fee of ₹5,000 under Section 234F. More importantly, you lose the right to carry forward capital losses from US stocks if you miss the July 31 deadline.
Budget 2026 extended the revised return deadline for AY 2026-27 to March 31, 2027 — three months longer than the previous December 31 cutoff.
Form 67 can be filed on or before the end of the Assessment Year — March 31, 2027, for AY 2026-27. You can file it with original, belated, or revised returns. However, always file it before submitting your ITR to avoid processing errors.
Updated returns under Section 139(8A) remain available for up to 48 months from the end of the Assessment Year, with additional tax of 25% to 50%.
Getting your US stock income right in your Indian ITR takes effort, but the process follows a clear sequence. Pick the correct form, report every foreign asset in Schedule FA, declare all income in Schedule FSI, claim your credits through Schedule TR and Form 67, and file before the deadline.
Download your Annual Information Statement (AIS) from the e-filing portal early — it often contains pre-filled foreign remittance data from your bank—Cross-check AIS data against your broker records to catch discrepancies before filing.
If you missed reporting US stocks in a previous year's return, act quickly. File a revised return if still within the deadline, or use the updated return option under Section 139(8A). The FAST-DS 2026 disclosure scheme from Budget 2026 offers a limited window with reduced penalties for first-time disclosures.
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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Table of Contents
If you hold even one share of Apple, Tesla, or any US-listed company, you cannot use ITR-1. Indian tax law requires you to report foreign assets and income using specific schedules, which are supported only by ITR-2 and ITR-3. Failure to make these disclosures can trigger penalties of up to ₹10 lakh per year under the Black Money Act.
This guide walks you through every schedule, every rate, and every step you need to know about how to file US stock income ITR India for AY 2025-26 and AY 2026-27.
Which ITR form to use: ITR-2 vs ITR-3
The choice between ITR-2 vs ITR-3 US stocks depends entirely on whether you earn business or professional income.
Use ITR-2 if you are salaried, earn capital gains from US stocks, receive dividends, and hold RSUs or ESOPs. This form includes Schedule CG, Schedule OS, Schedule FA, Schedule FSI, and Schedule TR. Most salaried employees at companies like Google, Amazon, or Infosys with US stock grants should file ITR-2.
Switch to ITR-3 only if you also earn business or professional income alongside your US stock holdings. Freelancers, consultants, or individuals whose frequent trading qualifies as speculative business income must use ITR-3. Both forms support identical schedules for foreign asset and income reporting.
ITR-1 (Sahaj) and ITR-4 (Sugam) do not include Schedule FA. You cannot use them if you hold any foreign asset, regardless of its value. Even if your total foreign income is zero and you hold a dormant US brokerage account, ITR-1 is disqualified.
A common mistake among salaried employees receiving RSUs is filing ITR-1 when their employer has already deducted TDS on their salary. The moment you hold vested US shares, Schedule FA is triggered, and ITR-2 becomes mandatory.
Schedule FA requirements: Foreign asset reporting with no threshold
Schedule FA is the mandatory foreign asset disclosure schedule. Every Resident and Ordinarily Resident (ROR) taxpayer must report all foreign assets held at any time during the calendar year — January 1 to December 31 — not the financial year.
This calendar year distinction catches many filers off guard. For AY 2026-27 (FY 2025-26), you must report assets held between January 1, 2025, and December 31, 2025.
There is no minimum value threshold. A single fractional share worth ₹500 requires the same disclosure as a ₹50 lakh portfolio. Even zero-balance brokerage accounts and stocks sold mid-year must appear in Schedule FA if held at any point during the calendar year.
For US stock investors, two tables matter most. Table A2 captures your foreign brokerage account details — institution name, account number, peak balance, and closing balance. Table A3 covers individual equity holdings — company name, acquisition date, initial value, peak value during the year, closing value, and any income earned.
Convert all values to INR using the SBI Telegraphic Transfer Buying Rate (TTBR) on the relevant dates. The foreign asset reporting deadline aligns with your ITR filing date — July 31, 2026, for most individuals filing AY 2026-27.
Penalties under the Black Money Act remain steep. Non-disclosure of foreign assets attracts a fine of ₹10 lakh per assessment year. Willful evasion can result in imprisonment for three to ten years. However, a 2024 relaxation exempts penalties when undisclosed movable foreign assets total ₹20 lakh or less in a financial year.
Schedule FSI for foreign income: Reporting dividends and capital gains
Schedule FSI (Foreign Source Income) requires a line-by-line breakdown of every type of foreign income you earned. For each entry, you must provide the country code (US = 840), your taxpayer identification number, gross income in INR, and foreign tax paid.
Report capital gains from US stocks and dividend income separately in Schedule FSI. Each income type maps to a specific DTAA article. Dividends fall under Article 10 of the India-US treaty, while capital gains come under Article 13. Select Section 90 as the basis for relief, since India has a DTAA with the United States.
The gross income amounts in Schedule FSI must match what you report in the corresponding head schedules. Capital gains should match Schedule CG entries, and dividend income should match Schedule OS entries. Any mismatch will trigger a validation error on the e-filing portal. The portal cross-checks these figures automatically during the validation step before submission.
Schedule TR for tax relief: Claiming your foreign tax credit
Schedule TR (Tax Relief) summarises your Foreign Tax Credit (FTC) claim country-wise. It pulls data from Schedule FSI and calculates the credit you can claim against your Indian tax liability.
The FTC equals the lower of the US tax actually paid on that income and the Indian tax attributable to the same income. This comparison is performed separately for each income source: dividends, FTC, and capital gains. FTC is computed independently.
Understanding the interplay between the Schedule, the FA Schedule, and the FSISchedule TR is critical. Schedule FA discloses the asset, Schedule FSI reports the income earned from it, and Schedule TR claims credit for foreign taxes already paid. All three must be consistent and cross-referenced.
Capital gains reporting: Rates after Budget 2024
US stocks are classified as unlisted shares under Indian tax law because they are not listed on NSE or BSE. This classification determines your holding period threshold and applicable tax rate.
Short-term capital gains (STCG): If you sell within 24 months of purchase, the gains are added to your total income and taxed at your applicable slab rate. Under the new tax regime, this could be anywhere from 5% to 30%.
Long-term capital gains (LTCG): If you hold for 24 months or more, the gains attract a flat 12.5% tax under Section 112. Budget 2024 reduced this rate from 20% effective July 23, 2024, and simultaneously removed the indexation benefit for foreign stocks.
The ₹1.25 lakh annual LTCG exemption under Section 112A does not apply to US stocks. That exemption covers only Indian listed equity where STT is paid.
For RSUs, the holding period starts from the vesting date, not the grant date. The perquisite value at vesting is taxed as salary income, while any subsequent gain or loss from sale goes into Schedule CG. Convert both the cost basis and sale proceeds to INR using the SBI TTBR on the applicable dates.
Budget 2025 introduced a relief measure: long-term capital losses incurred until March 31, 2026, can be offset against short-term capital gains from AY 2026-27 onward. Budget 2026 kept the 12.5% LTCG rate and slab-based STCG rate completely unchanged.
For a detailed breakdown of all applicable rates and exemptions, read our guide on tax implications for Indian residents investing in US stocks.
Dividend income reporting: How DTAA prevents double taxation
The US withholds tax on dividends paid to Indian investors. The default withholding rate is 30%, but this drops to 25% if you have filed Form W-8BEN with your US broker.
In India, report the gross dividend (before US withholding) under "Income from Other Sources" in Schedule OS. Never enter the net amount received — this is one of the most common filing errors.
The India-US DTAA then prevents full double taxation. If your Indian slab rate is 30% and the US withheld 25%, you pay only an extra 5% in India after claiming the FTC. However, if your Indian rate is below 25%, the excess US withholding is an irrecoverable cost.
Always file Form W-8BEN with your broker to ensure the reduced 25% rate applies instead of the default 30%.
Learn more about dividend withholding and DTAA credit calculations in our complete guide to understanding taxation on US stocks in India.
Step-by-step filing guide on the e-filing portal
Step 1 — Log in and start your return. Visit the income tax e-filing portal at eportal.incometax.gov.in. Navigate to e-File → Income Tax Returns → File Income Tax Return. Select the Assessment Year and choose ITR-2.
Step 2 — Select applicable schedules. Tick Schedule CG, Schedule OS, Schedule FA, Schedule FSI, and Schedule TR. Personal information will auto-populate from your Annual Information Statement (AIS).
Step 3 — Fill Schedule CG for capital gains. Enter US stock sales under Item A5 (STCG on assets other than listed Indian equity) or Item B9 (LTCG on unlisted shares). Provide purchase date, sale date, cost of acquisition in INR, and sale consideration in INR.
Step 4 — Fill Schedule OS for dividends. Enter the gross dividend amount under Item 1a. Use the SBI TTBR on the last day of the month preceding the dividend payment date for currency conversion.
Step 5 — Complete Schedule FA. Fill Table A2 with your brokerage account details and Table A3 with individual stock holdings. Remember this schedule follows the calendar year, not the financial year.
Step 6 — Complete Schedule FSI and Schedule TR. Enter the US country code (840), gross income amounts, foreign tax paid, and the applicable DTAA articles. Schedule TR will auto-compute the FTC summary.
Step 7 — File Form 67 before submitting your ITR. Navigate to e-File → Income Tax Forms → Form 67. Enter details of foreign income and tax paid. Upload supporting documents, including Form 1042-S from your US broker. E-verify the form.
Step 8 — Submit and verify your ITR. Review Part B-TTI for tax computation. Pay any self-assessment tax due through Challan 280. Validate and e-verify using Aadhaar OTP or net banking.
All currency conversions must use the SBI TTBR on the last day of the month preceding the transaction month, as prescribed under Rule 115. Maintain broker statements and conversion records for at least seven years.
Key deadlines you must not miss.
The original ITR due date for most individuals is July 31 of the assessment year. For AY 2026-27, this falls on July 31, 2026.
If you miss the original deadline, you can still file a belated return for US stocks in India by December 31, 2026. However, late filing attracts a fee of ₹5,000 under Section 234F. More importantly, you lose the right to carry forward capital losses from US stocks if you miss the July 31 deadline.
Budget 2026 extended the revised return deadline for AY 2026-27 to March 31, 2027 — three months longer than the previous December 31 cutoff.
Form 67 can be filed on or before the end of the Assessment Year — March 31, 2027, for AY 2026-27. You can file it with original, belated, or revised returns. However, always file it before submitting your ITR to avoid processing errors.
Updated returns under Section 139(8A) remain available for up to 48 months from the end of the Assessment Year, with additional tax of 25% to 50%.
Getting your US stock income right in your Indian ITR takes effort, but the process follows a clear sequence. Pick the correct form, report every foreign asset in Schedule FA, declare all income in Schedule FSI, claim your credits through Schedule TR and Form 67, and file before the deadline.
Download your Annual Information Statement (AIS) from the e-filing portal early — it often contains pre-filled foreign remittance data from your bank—Cross-check AIS data against your broker records to catch discrepancies before filing.
If you missed reporting US stocks in a previous year's return, act quickly. File a revised return if still within the deadline, or use the updated return option under Section 139(8A). The FAST-DS 2026 disclosure scheme from Budget 2026 offers a limited window with reduced penalties for first-time disclosures.
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
