Foreign dividends are taxed at slab rates; claim foreign tax credit for TDS paid abroad and report in ITR.
This infographic explains the taxation of dividends earned from foreign stocks by Indian residents. Such dividends are added to total income and taxed at applicable slab rates. TDS deducted abroad can be claimed as a credit under DTAA by filing Form 67. Report all foreign dividend income in Schedule Foreign Assets of the ITR. Use RBI’s exchange rate for conversion. Non-reporting can lead to penalties under the Black Money Act.