Foreign investors are taxed on capital gains and dividends from Indian stocks; DTAA benefits may apply.
This infographic details the taxation of foreign investments in Indian stock markets for NRIs and FPIs. Short-term capital gains are taxed at 15%, and long-term gains above ₹1 lakh at 10%. Dividends are taxed at 20% for non-residents, with possible DTAA relief. Investors must comply with FEMA and SEBI, file returns, and claim refunds if excess tax is deducted.