Navigating Taxation of Foreign Shares: Insights from Vested Finance CEO Viram Shah

Indian investors are increasingly looking to diversify their portfolios by investing in international companies, particularly in the AI and technology sectors. However, one major concern for Indian investors has been the taxation of foreign shares, as Indian tax regulations require them to disclose their worldwide income to income tax authorities.

In an interview with Financial Express Online, Viram Shah, CEO of Vested Finance, discussed the importance of filing tax returns for Indian investors investing in US markets. Vested has integrated ClearTax onto its platform to simplify the tax filing process for its users. This partnership allows individuals to easily pull all their relevant tax details, including capital gains tax and schedule of Foreign Assets, and file their taxes in one click.

Shah also mentioned that Vested aims to streamline the tax filing process further for its users by working with multiple partners and constantly improving their in-house tax module. With the increasing popularity of US market investments among Indian investors, Shah observed that investors are interested in large tech companies like Tesla and Nvidia, and are also saving in USD to remove currency risk from their savings.

In terms of advice for investors interested in diversifying their portfolios with US market investments, Shah emphasized the importance of creating a diversified portfolio, especially in the current economic climate. He highlighted that investing in global brands through the US markets provides global diversification, and mentioned options like investing in ETFs or ADRs of companies from different countries. Overall, Shah stressed the ease and importance of global diversification in today’s world.