US Stocks via GIFT City: What's Your Tax Advantage?

Indian brokers like SAMCO and Dhan now let you invest in US stocks and ETFs through GIFT City in Gujarat. This gives you legal, regulated access to global markets with significant tax benefits compared to the old direct overseas route.

Here's what happened: Indian brokers are launching US stock and ETF investing platforms routed through GIFT City (IFSC) in Ahmedabad, Gujarat.. The GIFT City route offers Indian retail investors a regulated, RBI-compliant path to buy US-listed shares and ETFs.. Unlike direct overseas investing under the LRS route, GIFT City-based investing enjoys a separate tax and regulatory framework under IFSC rules..

What you should do: Check if your existing broker (SAMCO, Dhan, Zerodha, etc.) has launched a GIFT City-linked US investing account and compare their fees.. Understand your LRS limit — you can remit up to $250,000 per year overseas; GIFT City investments count separately under IFSC rules.. Consult a tax advisor before investing to confirm your capital gains and dividend tax treatment under the GIFT City (IFSC) framework..

GIFT City (IFSC) investments can be exempt from Indian capital gains tax under Section 10(4D) — a major advantage over direct LRS-based US stock investing, where gains are taxed as foreign income.