How to Invest in Microsoft Corporation Stock from India: A Complete Guide

Microsoft Corporation stands as one of the most influential technology companies in the world, shaping the way people use computers, the internet, and the digital services. Headquartered in Redmond, Washington, this tech conglomerate, is one of the two US-based companies that received an AAA prime credit rating.

Talking about Microsoft’s share price, in the span of a year, Microsoft delivered 19.57% returns, while in three years, the stock delivered over 91% returns. 

If you are someone looking to explore the US Stock market, one thing that must have struck your mind is how you can invest in Microsoft stock from India easily and securely.

About Microsoft Corporation 

Microsoft Corporation was founded on April 4, 1975, by Bill Gates and Paul Allen in Albuquerque, New Mexico. Started with a mission to bring a computer to every desk and into every home, the company saw its first success in 1980 when IBM selected Microsoft to provide the operating system for its personal computers. What changed for Microsoft was the launch of Windows in 1985, which had a graphical interface.

Microsoft went public on March 13, 1986, listing its shares on the NASDAQ Stock Exchange under the ticker symbol ‘MSFT.’

At present, the company operates through three primary segments: Productivity and Business Processes, which includes Microsoft 365, LinkedIn, and Dynamics; Intelligent Cloud, which features Azure, GitHub, and Windows Server; and More Personal Computing, which covers Windows OS, Surface devices, Xbox, Bing, and advertising.

As of September 2025, Microsoft has a market capitalisation of USD 3.79 trillion and a P/E (TTM) ratio of 37.30. Other key details of the company’s financials include:

• In 2025, Microsoft posted a gross profit of USD 193,893 million, a 13.38% increase from the previous financial year.
• The net income after accounting for extraordinary items and discontinued operations was USD 101,832 million.
• Microsoft’s total dividend per share stood at USD 3,240 in FY2025, while the liabilities in FY2025 were USD 275,524 million.

Recently, the company has announced a capex of USD 80 billion to expand its AI and cloud infrastructure. This includes new Azure data centres and supercomputing capabilities powered by custom chips and NVIDIA H100. The company has also committed USD 30 billion in the UK to build the largest AI supercomputer with 23,000 GPUs.

In the AI domain, Microsoft faces tough competition from listed companies like Alphabet (Google), Amazon, Salesforce, NVIDIA, and Meta. 

Steps to Invest in Microsoft Stock from India

You can invest in Microsoft shares from India in the following ways:

Direct Investment

You can directly invest in Microsoft shares through Vested. The best part is you do not need to buy an entire share. With fractional investing, you can start small. For example, Microsoft stock is currently trading at over USD 500. Even if you have just USD 1, you can still own a fraction of the stock.

Indirect Investment

You can also invest in mutual funds and exchange-traded funds (ETFs) that hold Microsoft stock in their portfolio. Vested also offers both of these investment options.

Can Indians Invest in Microsoft Corporation Stock?

Yes, as a resident Indian, you can legally invest in Microsoft or other US equity stocks under the Liberalised Remittance Scheme (LRS) introduced by the Reserve Bank of India. As per the LRS provisions, in any financial year, the total investment you make in an overseas instrument must not exceed USD 250,000.

The government allows you to make direct investments in US equities either through Indian brokers with partnerships with US firms or through international brokerage platforms.

If you are looking for a hassle-free direct investment in US stocks or an indirect investment through mutual funds and ETFs, turn to Vested. To use the platform, complete the KYC formalities, link your bank account, and add the necessary funds in INR. The platform converts the INR into USD, after which you can start investing in listed US stocks.

How to Buy Microsoft Corporation Stock on Vested (Step-by-Step)

Here is how to buy Microsoft shares from India:  

• Step 1: Visit the Play Store or App Store, depending on your phone and download the Vested app. You can also directly sign up on the Vested website, too.
• Step 2:  Share your details and upload scanned copies of your PAN card and other ID proofs to complete the KYC.
• Step 3: After online verification, link your bank account to the Vested app and fund your account. The app will convert your deposits into USD as per the RBI’s LRS rules.
• Step 4: Go to the search bar and type ‘MSFT.’ The details of Microsoft stock will appear on your screen. 
• Step 5: Scroll the screen, click on the ‘Buy’ option, and then enter the amount. Since Vested permits fractional ownership, you can enter any amount you wish to invest. Once done, confirm your order.
• Step 6: Re-login, and the details of your investment will appear at the top. 

How to Sell Microsoft Stock

Selling Microsoft shares through the Vested platform requires just four simple steps:

• Step 1: Open the Vested App on your smartphone and log in using your credentials. 
• Step 2: Go to your portfolio and tap on ‘MSFT’ stock.
• Step 3: Enter the number of shares you wish to redeem. You may also enter the amount in USD you wish to withdraw by redeeming your Microsoft holdings. 
• Step 4: Click ‘Confirm’ and the transaction will reflect in your Vested dashboard within a few seconds.

Note: You can either transfer the amount to your account or keep it in a portal to use for future investments. If you choose to withdraw, the funds may take up to two days to reflect in your Indian Bank account.

5 Things to Know Before Investing in Microsoft Stock

When investing in Microsoft stock, know about the following rules and regulations:

• TCS Collection: Post budget 2025, total remittances under LRS over ₹10 lakhs in a financial year attract 20% TCS on the excess amount. However, you can adjust this against your final tax liability or claim a refund. To offset against your monthly salary TDS, use Form 12BAA. 
• Mandatory Disclosure: Regardless of the foreign asset you invest in, you must disclose it in Schedule FA of your Income Tax Return. As per the norms, mention the date and cost of acquisition, peak balance during the year, income earned, and details of the broker. Non-disclosure attracts a penalty under the Black Money Act.
• Dividend Taxation: Dividend income from the US stocks is paid after deducting 25% withholding tax. In India, the same dividend is taxed again at your income slab rate. However, under the India-US Double Taxation (DTAA), you can claim a deduction by filling Form 67 when submitting your ITR. You must also convert the dividend to INR using the SBI TT buying rate of the previous month. 
• Capital Gains: Any profit you make by selling your Microsoft stock holdings attracts capital gains tax. For example, if you redeem your holdings after 24 months from the date of investment, long-term capital gains tax of 12.5% applies. For sale transactions within 24 months, short-term capital gains tax applies as per your income tax slab. 
• FEMA Compliance: The provisions of the Foreign Exchange Management Act (FEMA) mandate that only resident individuals can invest abroad under LRS, and that too only in their own name. You are restricted from making investments on behalf of a company, trust, or partnership. The act also refrains from joint accounts with NRIs or foreign nationals. 

Conclusion

With Vested, accessing the US market and investing in companies like Microsoft stock has become easier than ever. The platform, with a simple KYC process and a minimum investment of USD 1 allows for fractional ownership, so that even small investors can access this global tech giant. For effective investment, know the taxation rules, compliance, and factors affecting your returns.