Yes. Has to be declared. I have been doing for a few years. Company/date/buy price needs to be declared every year. Tax is only when dividend or sale happens.
I have been recipient of RSUs in the US for several years now. It is very easy to fill up the TR_FA sheet.
IMO, not investing in US because of commissions, exchange or taxation is a poor idea. Taxation is easily handled by a good CA.
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Same here. I handle the taxation myself. Like investing, i trust only myself for taxation too.
Only pain is if you have refunds from ITR, the wait is painfully long for 1.5yr+ , but thatās not a reason to not invest
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Yes, even if refunds take time, IT department pays 12% interest for the delay. So why bother about taxation.
If you have a good CA and clean accounts, nothing to worry about the taxman
Very valuable information
I have a question. Please delete this and pardon me if itās not related. Is it possible for an Indian trader to enter the US investing championship? They are open to anyone from any country as per the rules. Iām curious if a US broker account is required or will zerodha suffice? If anyone has any experience with this, itād be very helpful.
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@rkirana , No doubt that you have selected very high quality business , now coming to the valuation and your target of 3-4X is 5 years , so you are expecting $APPL , $AMZN , GOOG to 8T $ Club and others to be in Approx. 500 B $ club , itās seems to be pretty tough but who knows that would be possible. Even in 2015 these company valuation was looking starched but they have delivered more than 5X in last 5-6 years .
$TEAM is good company and performed really well in last 10 years , but I donāt see there product as niche as compare to $ADBE or $CRM,
No doubt $NFLX has totally changed the consumer and TV/Media industry , but how it will pan out in next 5-10 years as lots of the company is coming into OTT space especially ATT, Disney and others.
I feel like at current valuation $MMM is really a great price . Did you get chance to look into $BABA , $BRK.B , $MU , $TSM , $CPRT $CRM.
~Happy Investing !!
With due respect to R&D abroad, and I also used to think alike, we cannot compare R&D of developing economy vs developed economy. I am sure, when the time comes and the time demands, the great Indian firms will dwarf global ones in both R&D and innovationā¦not to mention we do have innovation & R&D in pockets of sectors I track - FMCG, Consumer durables/discretionary, Retail, Digital Tech along with unmatched adaptability skills in Technology & some manufacturing niche areasā¦
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Maybe now next sector can be Aviation and tourism industry ,
feel like Disney and Boeing can be keep on watchā¦
This is my personal view , Not a advice to buy . U can do your own study .
This is very important point for long term investors, thanks for highlighting this. Is this applicable in case the heir is US citizen and parents are Indian citizens living in India and having financial assets in India? Do still inheritence tax of US come into picture if the person inheriting, although living in India and inheriting Indian assets, is a US citizen? Thanks
Not sure about this. US Tax consultant would be able to answer better. Let us know what you find out.
I would suggest to clarify this before getting deep into this arrangement of owning foreign assets.
Mukesh
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What I said is ā3-4 companies in my list could be 3-4X in 5 years making up for any laggardsā. So seems like you did not read my post correctly. The idea behind disruptive tech is some of these are going to rocket ship driving my entire portfolio up. I donāt know how wise it is to look at total market cap. Apple is more than 2 T USD in market cap- but their pro headsets themselves drive $20 BB revenue annually!! Iphones are a status symbol and the penetration of iphones and macbooks is only increasing. Look at ātotal addressable marketā and not the āsize of the giantā.
TEAM is Atlassian. Jira, Confluence, Jira service desk will see more adoption as software digital transformation continues. Atlassian has audacious goals. Read these: https://s2.q4cdn.com/141359120/files/doc_downloads/2020/11/FY21-Investor-Day-6-Pagers-8.5x11-PDF-EXPORT-FILE-Section-1.pdf and https://s2.q4cdn.com/141359120/files/doc_downloads/2021/01/FY21-Investor-Day--6-Pagers--8.5x11-PDF-EXPORT-FILE-Section-3.pdf
There is so much information disclosed by these US companies that it is a shame if we do not do research
My idea is not to own all stocks but a portfolio of 'buy and hold for ever" stocks with little to no churn to this portfolio. I am conscious about over-diversification. The portfolio companies are strong mix of disruption, high-tech, pharma, leaders etc. I might add a couple of names in Biologics space once I do research
I like to buy tech and pharma research companies with a high hiring bar. Companies with a high hiring bar (FANG) have consistently outperformed those without,
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Not sure if you did sufficient research on your challenges
- This is not fully correct
- 40% is the top tier rate at USD 1M and up. There could be state estate taxes as well.
- There is an exemption until USD 60000 for inheritance. So the amount above that will be taxed
To avoid this tax,
- many own these US assets via foreign trust or company
- Some keep family members in the know (login, password details in excel) so that in case of impending death due to illness or disease, the assets sold and the money repatriated
We are talking of an extreme scenario, in which we as investors are suddenly dead, without a weekās notice to repatriate holdings
This is an important point but not sufficient to stop investing in US markets. My basic premise is that I will live long enough to see the fruit of my investments!! Like they say, one that does not want to invest, will find a reason not to invest!
But this opened eyes to an important point. In case the value of my investments (from 100K) to more than a couple of million $, one could consider the ātrustā route to be fully safe.
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Not true. I have held RSUs for more than half a decade. There is no extra compliance requirement other than denoting these in the TR_FA sheet of ITR_2
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Not true. There is no correspondence required with IT officer if you file taxes in a clean manner.
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Not true. India and US have a DTAA agreement. You will not pay tax on the same income twice.
ETF is buying the index and you cannot have a portfolio of stocks like I created. Buying the index is buying Oracle, IBM etc. that I would not touch with a bargepole
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Options mentioned by you to avoid estate tax was explored - setting up foreign trust or company is not straight forward and will make sense probably if the asset involved is in the range of multi-million $. Second option - accessing account after person is no more there, is illegal in my view. I wouldnāt want my heirs to take this approach to access their own legal money.
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TR_FA: Looks like there are stuff to learn from you. Would you mind sharing sample TR_FA section after removing specifics name / numbers.
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Dividend Tax withholding: Dividend goes through tax withholding. At the end of the year you get form 1042S. You file ITR and claim credit for this tax withholding. CPC has no way to validate this credit, so most of the time they send your processing to Assessing officer. I am telling this from my personal experience of more than a decade.
Good luck with whatever approach you take. I am not recommending any particular approach, just wanted to share what I learned.
Mukesh
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I did not suggest any illegality. What I said is in cases where your death is not sudden, you can repatriate money in a week. I thought I said in clear plain english. Do not misrepresent what I said. Read my post in detail. Except in the case where your death is sudden, you will always be able to repatriate money. In any case the premise of investing is that you will be alive for a few years
Download itr2 form and look at tr_fa section. It is not too difficult to learn
You do not want to invest directly. Good luck! Like I mentioned, commissions, tax management that good CA easily handles and extreme events are not barriers to US investing. I dont want to miss out on the goldmine. I will be posting updates here regularly and we can compare portfolio returns over index. Now that would be good learningš
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You are right on #3. I have been doing this personally for years. You need to preserve 1042S, but it hasnāt been put to use it.
Hi All,
Please let me know your views on ARK ETFs.
Can we go with SIP mode for ARK ETFsā¦Talk of the town ETFs.
Thanks,
Kumar
I have invested in ARK Genomics and ARK innovation ETFs. It is part of my portfolio and plan to SIP in them
There was a discussion about Atlassian and why I picked it. It just hit all-time high yesterday and biggest gainer in a young portfolio
Few options you can explore:
Motilal Oswal has also launched S&P 500 ETF, which is quite good
edelweiss us technology equity invests is all Tech Companies
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