LRS on WebNotes

Why Zerodha does not offer US stocks

Wed, 20 May 2026 00:00:00 +0000

Zerodha has consistently chosen not to offer direct US stock trading. The Kamath brothers have publicly explained the reasoning, which combines regulatory complexity, operational economics, and strategic focus. This article documents the main reasons.

Regulatory complexity

LRS framework

The Liberalised Remittance Scheme (LRS) limits Indian residents to USD 2.5 lakh per FY for overseas investments. For Zerodha to facilitate US trading:

Must implement LRS-tracking for each client.
Must remit funds via authorised dealers (specific bank coordination).
Must report annually to RBI.
Must handle FEMA compliance.

This adds operational overhead substantially.

How to track TCS on foreign remittance for mutual fund purposes

Tue, 19 May 2026 00:00:00 +0000

TCS (Tax Collected at Source) on LRS foreign remittance was introduced to track international transactions and prevent tax evasion. For investment purposes (foreign stocks, mutual funds), 20% TCS applies on remittance above Rs 10 lakh per FY. TCS is a pre-paid tax; claim as ITR credit and recover refund if your total tax is lower.

Conflict-of-interest disclosure. This guide is published by WebNotes Editorial Team for informational purposes. WebNotes has no commercial relationship with any bank or AMC. No affiliate commission is earned. For substantial international transactions, consult a CA familiar with LRS / cross-border tax.

International FoF vs direct foreign brokerage

Tue, 19 May 2026 00:00:00 +0000

The International FoF vs direct foreign brokerage comparison addresses how Indian investors should access US, European, or global equities: through Indian mutual fund Fund-of-Funds (FoF) wrappers, or via the Liberalised Remittance Scheme (LRS) using a US / foreign brokerage account directly. The post-2023 tax change to international FoFs makes this decision particularly consequential.

For Indian retail investors holding meaningful sums for long-term international diversification, the direct LRS route is often tax-superior, though operationally more complex.

International fund of funds vs direct foreign brokerage for overseas investing

Tue, 12 May 2026 00:00:00 +0000

Indian investors seeking exposure to overseas equity markets, primarily US equities (S&P 500, Nasdaq) and international indices, can access them through two primary regulated channels: international mutual fund of funds (FoFs) offered by Indian AMCs, or direct foreign brokerage accounts maintained under the RBI’s Liberalised Remittance Scheme (LRS).

Both channels allow Indian resident individuals to invest in foreign equity markets, but differ substantially in regulatory framework, tax treatment, transaction process, limits, and cost.