This is how you can invest money in Apple and Microsoft stocks, know the important rules related to tax and investment..

Many Indian investors want to add stocks from other stock markets of the world to strengthen their portfolio. When the Indian stock market falls, the US market often performs well. In such a situation, if you have invested in big US companies like Apple and Microsoft, then your total investment can be balanced. This is the reason why the trend of investing in foreign stocks is now growing rapidly in India.

How to invest in Apple and Microsoft stocks?
If you want to buy shares of companies like Apple or Microsoft, then first of all, you have to open an account on a brokerage platform that allows Indians to invest in stocks in America. In India, some platforms like Zerodha (via Vested), INDmoney, Groww (US Stocks) are popular for this.

After opening an account on these platforms, you can send money from your bank to the US under LRS. Once the money is sent, you can buy stocks like Apple and Microsoft in the stock market there. These shares will remain in your US brokerage account, and you can track their performance from your mobile app or website.

LRS Scheme: Legal permission to send money abroad

The Reserve Bank of India (RBI) has provided the facility of “Liberalized Remittance Scheme” (LRS for Indian citizens. Under this, you can send up to $ 2.5 lakh (about Rs 2 crore) abroad in a financial year. You can send this money for things like studies, travel, or foreign investment. If you also want to invest with the help of your family members, then there will be a separate limit of $ 2.5 lakh for each member.

What is the tax rule?

In India, tax has to be paid on the income from foreign stocks. If you sell the shares within two years, then you will have to pay short-term capital gains tax. On the other hand, long-term capital gains tax will be levied on the shares sold after keeping them for more than two years. This tax will be decided by adding it to your total income.

If you get dividends from companies like Apple or Microsoft, then America already deducts 25% tax on it. But the good thing is that there is an agreement between India and America to avoid double taxation (DTAA). This means that you can adjust the tax deducted in America while filing ITR in India.

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