How to buy Texas Instruments (TXN) stock from India

Yes, an Indian resident can buy Texas Instruments — legally, in US dollars, under the RBI's Liberalised Remittance Scheme (LRS). The buying is easy. The 90% is dividend tax, capital-gains tax, estate-tax exposure, and position sizing. TXN pays a real quarterly dividend, so US withholding and Form 67 are unavoidable.

The 30-second version

• Legal and simple. Buy TXN via an India-facing platform (Vested, INDmoney) or a global broker (IBKR, Rovia). Whole or fractional shares.
• Dividend royalty. ~5.40 dollars/share/year, ~3% yield — one of the highest among mega-cap semis, backed by 60-plus years of payments and ~22 consecutive years of increases.
• Two tax layers. Dividends face 25% US withholding (DTAA rate, W-8BEN filed); India also taxes the gross dividend at slab, US tax claimed back via Form 67. From AY 2026-27, Form 67 is replaced by Form 44 — same idea, new number.
• Capital-gains tax: hold >24 months for 12.5% LTCG (Section 112, no indexation); sell sooner and pay slab.
• Estate trap: directly-held TXN is US-situs — above 60,000 dollars, your estate faces up to 40% US estate tax with no treaty relief.
• For "analog semis" exposure SOXX and SMH hold TXN as a top-five weight; QQQ, VOO, VTI also hold it.

Quick facts

Can an Indian resident buy it?	Yes — fully legal under the LRS
Ticker / exchange	TXN / Nasdaq
How	India-facing platform (Vested, INDmoney) or global broker (IBKR, Rovia)
Minimum	A fraction of one share
Dividend	About 5.40 dollars a share a year, roughly 3% yield, paid quarterly
US dividend withholding	25% under the India-US DTAA, W-8BEN on file
India tax on dividend	Slab on gross; FTC via Form 67 (Form 44 from TY 2026-27)
India tax on gains	12.5% LTCG after 24 months; else slab (Section 112)
Estate-tax risk	US-situs above 60,000 dollars means up to 40%, no treaty relief
Annual compliance	Schedule FA every year; Form 67 every year you receive a dividend

How to buy it — 3 steps

1. Open an account and finish KYC. Pick an India-facing platform (Vested, INDmoney) or a global broker (IBKR, Rovia). File W-8BEN during onboarding — without it, US withholding defaults to 30% instead of the 25% treaty rate. New? Start with how to invest in US stocks from India.
2. Fund via LRS. Remit under the LRS (cap: 250,000 dollars per financial year). 20% TCS applies above ten lakh rupees a year — a creditable prepayment, not a cost. See LRS explained and the LRS and TCS calculator.
3. Place the order. TXN trades in the low-to-mid hundreds per share — affordable whole, or buy a fractional rupee amount. Dividends arrive in USD; most platforms let you toggle reinvestment.

The tax that actually matters — dividends first

TXN's quarterly dividend means the dividend tax flow runs every year you hold it. Two steps: the US withholds 25% at source (DTAA rate, W-8BEN on file) and credits the net USD; India taxes the gross dividend at slab as "other sources" and you claim the US tax back as FTC via Form 67 before the ITR due date. From AY 2026-27, Form 67 is replaced by Form 44 — same mechanic, new number.

Worked example — dividend. 100 shares × 5.40 dollars = 540 dollars gross. US withholds 135 (25%), credits 405 net. In India declare the full 540 dollars (SBI TT buying rate on each pay date) at slab; at a 30%-plus marginal rate the Indian liability is ~162 dollars. Claim the 135 as FTC via Form 67, leaving ~27 dollars incremental India tax. Skip Form 67 and you double-tax yourself. Full mechanics in dividend withholding and Form 67.

Then the capital-gains tax — Section 112

When you sell, gains fall under Section 112 (foreign shares don't get the friendlier Section 112A treatment):

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

Worked example — LTCG. Buy 10 shares at 175 dollars at USD/INR 86 → cost 1,50,500 rupees. Sell 30 months later at 200 dollars at USD/INR 88 → proceeds 1,76,000 rupees. Gain 25,500 rupees; LTCG at 12.5% ≈ 3,188 rupees. Gain is in rupees, so a weaker rupee at sale amplifies it. Model with the US capital-gains calculator; rules in how US stocks are taxed in India.

The 60,000 dollar estate-tax trap

Directly-held TXN is US-situs. If the holder dies with more than 60,000 dollars of US-situs assets, the estate faces US estate tax up to 40% — and the India-US treaty does not cover estate tax. The fix (pooled or fund structures) has to be a deliberate choice before the position gets large. Full detail: the 60,000 dollar estate-tax trap.

Buy the stock, or get TXN through an ETF?

If you want…	Best route
A concentrated bet on analog and embedded	TXN directly
Broad semi exposure with TXN inside	SOXX or SMH — top-five holding in both
"US large-cap" that quietly includes TXN	VOO, VTI, or QQQ
Zero recurring dividend-tax paperwork	Accumulating fund routes; pure-play analog ETFs are thin
Least single-stock risk	A broad ETF

TXN is a meaningful weight in SOXX and SMH, smaller in QQQ, VOO and VTI. There is no large pure-play analog ETF — analog-specific exposure is structurally thin, which is part of what makes TXN distinctive. Compare routes in direct stocks vs US ETFs and best US ETFs for Indian investors.

The business in one screen

What it is: TXN designs and manufactures analog and embedded processing chips — the silicon inside cars, factories, appliances and medical devices. ~70% of revenue is industrial and automotive. TXN is mid-way through a 300mm capex super-cycle — over five billion dollars/year to build in-house capacity (Sherman, Lehi, Richardson), backed by CHIPS Act incentives. This compresses near-term FCF per share but lifts long-run gross margin and capacity ownership above any analog peer.

Bull case	Bear case
Analog and embedded duopoly with ADI; long product lifecycles	Capex super-cycle (5 billion dollars plus a year) compressing FCF per share
In-house 300mm fabs make Chinese foundry competition largely irrelevant	China competitive intensity in mid and low-end analog
CHIPS Act incentives, US onshoring tailwind for auto and industrial	Niche threats from Wolfspeed (SiC) and Power Integrations (switchers)
Capacity over-build pays off post-2027 as depreciation rolls forward	Auto and industrial demand still bottoming, destocking lingering
Dividend royalty — 60-plus years of payments, ~22 years of increases	Valuation premium vs ADI not obviously justified on growth

Exact valuation is in the widget above — priced for the upcycle to arrive on schedule.

Our take

Verdict: HOLD — moat is real and the dividend is sacrosanct, but the in-flight capex cycle and a fully-priced analog recovery cap near-term upside.

• Moat intact. TXN and ADI have turned a fragmented market into a duopoly — long product lifecycles, gross margins north of 55% even mid-downturn, switching costs in years.
• Capex super-cycle is real. Five billion dollars plus a year compresses FCF per share materially. Depreciation rolls in only from roughly 2027 — a multi-year wait, not a next-quarter catalyst.
• Dividend is the anchor. ~3% yield, 60-plus years of payments, ~22 consecutive years of increases — one of the more reliable income holdings in mega-cap tech. For an Indian investor willing to do Form 67 yearly, the after-tax yield is still meaningful. Total-return investors should weigh that against capex drag and a valuation that already reflects an analog upcycle.

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

• FCF compression from capex: the feature making TXN attractive long-term (in-house 300mm) suppresses near-term FCF per share, and management has defended capex over short-term optics.
• China and niche competition: Chinese analog catalogues catching up at the low/mid-end; Wolfspeed (SiC) and Power Integrations (switchers) chip away at sub-segments TXN once owned by default.
• Currency: return and dividend in USD but you spend rupees — see the rupee-dollar effect.

Two things people forget

• Schedule FA and Form 67: disclose TXN in Schedule FA every year you hold it, even at a loss, and file Form 67 (Form 44 from TY 2026-27) every year you receive a dividend, before the ITR due date. Miss it and the 25% becomes a permanent cost. Use the Schedule FA helper.
• Position size: a single mega-cap, however durable, is not an index. Size TXN as an income-tilted satellite, not a substitute for a broad ETF.

Bottom line

Buying TXN from India is easy. What needs thought is that TXN runs on two tax layers (dividend at slab with 25% US WHT offset via Form 67, plus Section 112 LTCG at 12.5% after 24 months), is US-situs with a 60k dollar estate-tax trap, and is mid-capex super-cycle compressing FCF per share until depreciation normalises post-2027. The dividend is why to own it; the capex is why it is a HOLD, not a BUY. If your thesis is "analog and embedded as a category," SOXX or SMH gives you TXN without single-stock risk. 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.