How to buy Lockheed Martin (LMT) stock from India

Yes, an Indian resident can buy Lockheed Martin — legally, in USD, under the RBI's Liberalised Remittance Scheme (LRS). Buying is the easy 10%. The 90% that decides your outcome is tax, estate-tax exposure, and position sizing. LMT pays a steady, growing dividend, so US withholding and Form 67 are part of the picture. This is the short version.

The 30-second version

• Legal and simple. Buy LMT via any India-facing platform (Vested, INDmoney) or a global broker (Interactive Brokers, Rovia). Whole shares or a fractional rupee amount.
• Defense dividend grower. LMT has raised its dividend for 20+ consecutive years, yielding roughly 2.5-3% — a real cash-return stock.
• US dividend WHT is 25% under the India-US treaty for Indian retail holders; you reclaim it as a foreign tax credit using Form 67 (becoming Form 44 from TY 2026-27).
• India tax on capital gains: hold more than 24 months and pay 12.5% LTCG (no indexation); sell sooner and pay your slab rate. This is Section 112, not the friendlier 112A that Indian shares get.
• The trap most miss: directly-held LMT is a US-situs asset — above $60,000, your estate faces up to 40% US estate tax, with no treaty relief.
• If your thesis is "global defense," ITA, XAR, or PPA give you LMT alongside RTX, NOC, GD, and BA — without single-program risk.

Quick facts

Can an Indian resident buy it?	Yes — fully legal under the LRS
Ticker / exchange	LMT / NYSE
How	India-facing platform (Vested, INDmoney) or global broker (IBKR, Rovia)
Minimum	A fraction of one share (fractional lets you invest an exact rupee amount)
Dividend	Yes — roughly 2.5-3% yield, 20+ years of consecutive increases
US withholding	25% under the India-US DTAA (file W-8BEN with your broker)
India tax on gains	12.5% LTCG after 24 months; else your slab (Section 112)
Estate-tax risk	US-situs above $60k means up to 40%, no treaty relief
Annual compliance	Schedule FA disclosure + Form 67 (Form 44 from TY 2026-27)

How to buy it — 3 steps

1. Open an account and finish KYC. Pick an India-facing platform (Vested, INDmoney) for a simple India-funded experience, or a global broker (Interactive Brokers, Rovia). File your W-8BEN during onboarding — this locks the US withholding at the treaty 25% instead of the default 30%. New to this? Start with how to invest in US stocks from India.
2. Fund it via the LRS. Remit from your Indian bank under the LRS (cap: $250,000 per FY). 20% TCS applies above ten lakh rupees in a year — a creditable prepayment, not a cost. See LRS explained and the LRS and TCS calculator.
3. Place the order. LMT trades around the mid-$400s to high-$500s per share — a high absolute price, so most retail Indians will buy one or two whole shares or use fractional to size by rupees. Reinvest dividends manually unless your broker auto-DRIPs.

The tax that actually matters

Lockheed pays a meaningful dividend, so two tax tracks apply: a recurring 25% US withholding on every dividend, and Section 112 on capital gains when you sell (foreign shares don't get the Section 112A treatment Indian equity enjoys):

Holding period	Treatment	Rate
24 months or less	Short-term	Your slab rate (up to roughly 30% plus surcharge)
More than 24 months	Long-term	12.5%, no indexation

On dividends. The US broker withholds 25% at source under the India-US treaty (assuming a valid W-8BEN). The gross dividend is taxable in India at slab, and you claim the 25% as FTC by filing Form 67 before your ITR — from TY 2026-27 this becomes Form 44. Most Indians pay no double tax, but the paperwork is annual. See dividend withholding and Form 67.

Worked example on capital gains. Buy 2 shares at $480 when USD/INR is 86 → cost 82,560 rupees. Sell 26 months later at $560 when USD/INR is 88 → proceeds 98,560 rupees. Taxable gain 16,000 rupees; LTCG at 12.5% = 2,000 rupees. Gain is computed in rupees, so a weaker rupee amplifies it. Model your own with the US capital-gains calculator; full rules in how US stocks are taxed in India.

The $60,000 estate-tax trap

Directly-held LMT is a US-situs asset. If the holder dies with more than $60,000 of US-situs assets, the estate faces up to 40% US estate tax — and the India-US treaty does not cover estate tax. Given LMT's $500-ish share price, a few dozen shares plus any other US-listed names can quietly cross the threshold. The fix (pooled or fund structures rather than direct shares) has to be a deliberate choice made before the position gets large. Full detail: the $60,000 estate-tax trap.

Buy the stock, or get Lockheed through an ETF?

If you want…	Best route
A concentrated bet on the F-35 and missile cycle	LMT directly
"Defense and aerospace will outperform" exposure	ITA, XAR (defense-themed) or PPA (aerospace) — LMT is a top holding alongside RTX, NOC, GD
Broad US large-cap with a defense tilt baked in	QQQ holds LMT only at a very light weight; VOO and VTI hold it proportionally — small exposure
The least single-program risk	A defense-themed ETF

LMT sits in QQQ only at a small weight (it's an NYSE industrial, not a Nasdaq tech name), but is a top holding in iShares US Aerospace and Defense (ITA) and SPDR Aerospace and Defense (XAR), with overlap in Invesco Aerospace and Defense (PPA). A defense ETF gives you LMT plus RTX, NOC, GD, and BA in one ticker, one Schedule FA entry, and cleaner estate-tax treatment. Compare the routes in direct stocks vs US ETFs and best US ETFs for Indian investors; the broader case is in US ETFs for Indians.

The business in one screen

What it is: the world's largest defense contractor, organised across four segments — Aeronautics (F-35, F-16, C-130), Missiles and Fire Control (PAC-3, HIMARS, Javelin, THAAD — highest-margin, ramping fastest post-Ukraine), Rotary and Mission Systems (Sikorsky, naval and radar), and Space (national-security launch, missile-warning satellites, Orion). The F-35 is the long-cycle cash machine: peak deliveries around 600 jets per year, with multi-decade sustainment and upgrades worth more than the initial sale.

Bull case	Bear case
F-35 long-cycle franchise — sustainment value exceeds initial sales	F-35 cost overruns and concurrency issues still surface
NATO uplift to 3-5% of GDP defense-spending commitments	US defense-budget politics — Continuing Resolutions, sequestration risk
Indo-Pacific posture and Ukraine reconstruction munitions demand	Heavy customer concentration on the US DoD
Missiles and Fire Control — highest-margin segment, ramping fastest	Premium defense valuation leaves less margin for execution slips
Dividend royalty plus disciplined buybacks	Program-execution risk on Sikorsky and next-gen platforms

Exact valuation is in the live widget above — a structural-geopolitics compounder priced at a defense premium.

Our take

Verdict: BUY — the F-35 cash machine, missile ramp, and dividend royalty justify the defense premium against a multi-year geopolitics tailwind.

• F-35 is the long-cycle franchise. Multi-decade sustainment, software, and upgrade revenue is worth more than the initial sales — a rare programme where the after-market dwarfs the original sticker.
• Missiles and Fire Control is the highest-quality segment. PAC-3, HIMARS, Javelin, and THAAD are the names being restocked across NATO and the Indo-Pacific after Ukraine — the highest-margin business and the one ramping fastest.
• Dividend royalty with structural tailwinds. A 2.5-3% yield with 20+ years of consecutive raises, disciplined buybacks, and NATO's push toward 3-5% of GDP defense spending give LMT cash return today plus visible top-line growth.

Compliance note. Vested.blog is not a SEBI-registered Research Analyst. The above is an editorial opinion for educational illustration only — not investment advice and not a regulated stock recommendation. Vested.blog is published by Rovia; the publisher and its affiliates may hold positions in stocks discussed. Make your own decisions or consult a SEBI-registered advisor.

Risks to size for

• US defense-budget politics: Continuing Resolutions, debt-ceiling fights, and sequestration risk can delay programmes; LMT depends heavily on a single customer (the US DoD).
• F-35 execution: a long history of cost overruns and concurrency issues; a sustainment-cost step-up or a major NATO buyer pulling orders would hit a single name far harder than an ETF.
• Currency: your return is in USD but you spend rupees — see the rupee-dollar effect.

Two things people forget

• Schedule FA and Form 67 (Form 44 from 2026-27): disclose LMT in Schedule FA every year you hold it — even at a loss. Because LMT pays a dividend, also file Form 67 (Form 44 from the new TY) to claim FTC for the 25% US withholding. Non-disclosure carries Black Money Act penalties. Use the Schedule FA helper.
• Indian-defense angle: India is also pushing indigenous defense via HAL, BEL, and BDL — US defense names like LMT are a complementary global-defense exposure, not a substitute for Indian-listed defense plays.

Bottom line

Buying LMT from India is easy and legal. What needs thought: Section 112 (12.5% LTCG after 24 months), the $60k estate-tax trap, and annual Form 67 (Form 44 from 2026-27) discipline for the 25% US dividend withholding. The upside: a 2.5-3% growing dividend, the F-35 long-cycle franchise, and a structural NATO and Indo-Pacific tailwind. If your real thesis is "global defense," ITA or XAR gives the same exposure across LMT, RTX, NOC, and GD without the single-program risk. For accounts and options, start at the US investing hub.

---

This article is general information, not personalised investment, tax, or legal advice. Rules, rates, and thresholds described here are as of 2026 and can change; verify the current position and consult a qualified advisor before acting.