So, the Indian stock market is not interesting for regular investors and traders anymore and investing has become a lot about "getting kick" more than creating wealth silently. Even crypto and Indian equity is now boring for a lot of people and movement has slightly shifted towards US stock markets. With boom in Nvidia and launch of platforms like "IND Money" its relatively easy to invest here than before and you also get the returns of incline in dollar rates. Don't get me wrong, there is nothing wrong with investing in US markets. They are, in fact, a good diversification for your investments. But anything done with proper background research always backfires one day or another. I will try to give a brief of what you might be getting into or may have already got into.

First of all, all Indian residents have to mandatorily disclose all foreign holdings in their ITR. Yes, you read that right ALL foreign holdings, equity, banks, demat accounts, crypto everything. Even if you have zero income and/or zero tax liability still you will have to file ITR just to make this declaration. Most of the people do not know about this rule and expose themselves to a penalty of 10 lacs under the Black Money Act.

Further, your investment will be a long term capital asset after 2 years as against the standard rule of 1 year for Indian equity. Why does that matter ? To keep it simple, for equity, short term capital asset attracts 20% tax and long term capital asset attracts 12.5%

To top it all off, the 1.25 lacs exemption that you get every year for Indian equity, that you conveniently use for tax harvesting, is not available for US stocks. So yes, even if you earn 10 rs. from US stock appreciation you have to pay tax on it.

So make sure you take these points into account before you start your US stocks journey.

Pro tip: A lot of dividend that US companies pay is after deduction withholding tax which can be claimed as tax paid as per US-India DTAA, so don't forget to claim that in you ITR.