Key learnings from this chapter:

1. Capital gains on US stocks are taxed only in India. Non-resident investors do not pay capital gains tax in the United States. Gains are taxed only in India at 12.5% for holdings above 24 months and at the slab rate for shorter holdings.

2. Capital gains must be calculated in rupees. Even though the investment happens in dollars, Indian tax rules require converting both the purchase price and sale value into INR using SBI TT buying rates before calculating the taxable gain.

3. Dividends face two layers of taxation. The US first deducts 25% withholding tax, and India then taxes the gross dividend at your slab rate, with credit allowed for the tax already paid in the US through Form 67.

4. Buybacks are more tax-efficient for investors. Share buybacks do not create an immediate tax event. Investors pay tax only when they sell the shares later as capital gains, which can make buyback-heavy companies more tax efficient.

5. Estate tax and disclosure rules are important to understand. US estate tax applies to non-residents on assets above $60,000, with rates that can reach 40%, and Indian investors must also disclose foreign assets annually in their tax filings.