Cost of bringing US investment money back to India: what you actually lose

You built a US stock portfolio over several years via LRS. Now you want some or all of it back in India — for a home purchase, retirement, or reallocation. What arrives in your bank account is substantially less than your portfolio value on the day you decided to repatriate. This guide maps every cost.

Use the repatriation cost calculator to compute the exact net for your situation.

---

The full cost stack

Repatriation has four layers of cost:

1. Indian capital gains tax — the biggest item
2. US withholding tax (dividends only, not capital gains)
3. FX conversion spread — the mid-rate vs your bank's rate
4. Wire transfer and bank fees

---

Layer 1: Indian capital gains tax

This is typically 80–90% of your total repatriation cost. When you sell US stocks or ETFs:

Holding period	Tax rate	Notes
Less than 24 months (STCG)	Your slab rate (up to 30% + surcharge + cess)	Computated in INR
24+ months (LTCG)	12.5% flat	No indexation, no surcharge

The LTCG rate is INR gain, not USD gain. If USD/INR was 75 when you bought and is 93 when you sell, the currency appreciation is part of your taxable gain even if the dollar price of the stock is flat.

Example: Bought 100 shares of VTI at $200 when USD/INR = 75 → INR cost = ₹15,00,000. Sold at $200 (flat in USD) when USD/INR = 93 → proceeds = ₹18,60,000. LTCG = ₹3,60,000 × 12.5% = ₹45,000 tax — on a position that went nowhere in USD.

This is the FX gain being taxed. It's real tax on a real rupee gain, even with zero USD return.

---

Layer 2: US tax (usually minimal)

With a valid W-8BEN on file at your US broker, capital gains from selling US stocks are not withheld by the US for non-US residents. The US withholds 30% on dividends by default, reduced to 15% under the India-US DTAA with W-8BEN.

So for repatriation purposes, if you're selling stocks (not dividends), US withholding is typically zero. Check with your broker that your W-8BEN is current — it expires and must be renewed periodically.

Any dividend withholding already paid in the US can be claimed as a Foreign Tax Credit in India via Form 67 (or Form 44 from TY 2026-27), reducing your Indian tax liability on the same dividend income.

---

Layer 3: FX conversion spread

When you wire USD from your US broker to your Indian bank account, the bank converts at its own rate — not the RBI reference rate or the mid-market rate you see on Google.

Typical spreads:

• Large Indian banks (HDFC, ICICI, SBI): 0.5–1.5% above mid-rate
• Specialist FX services (Wise, BookMyForex): 0.1–0.4%

On $100,000 repatriation:

• At 1% bank spread: ₹93,000 cost (at USD/INR 93)
• At 0.2% Wise spread: ₹18,600 cost

Wire fees: Typically $15–30 from your US broker for an international wire. Your Indian bank may also charge an inward remittance fee (₹500–1,500).

---

Layer 4: The NSR (No Surprise Repatriation) checklist

Before initiating a large repatriation:

1. Ensure W-8BEN is valid at your US broker
2. Compute capital gains in INR — not USD. Use purchase date exchange rates from RBI historical data or your broker's confirmation
3. Identify which lots to sell — sell LTCG-eligible lots first (24+ months) to lock in 12.5% rate; short-term lots would be at 30%+
4. Set aside Indian tax liability — you'll pay this at ITR filing (or advance tax if large)
5. Use a specialist FX service if the amount is large enough to justify the extra step

---

Worked example: $100,000 repatriation (LTCG)

Assume: Portfolio originally purchased at average USD/INR of 78 (total INR cost ₹78 lakh), current USD/INR 93, no US tax on capital gains.

Item	Amount
Portfolio value in USD	$100,000
Portfolio value in INR	₹93,00,000
INR cost basis	₹78,00,000
LTCG	₹15,00,000
Indian LTCG tax (12.5%)	₹1,87,500
FX spread (0.8%)	₹74,400
Wire + bank fees	₹5,000
Total cost of repatriation	₹2,66,900
Net INR received	₹90,33,100
Effective repatriation cost	2.87%

At 12.5% LTCG, total costs are under 3% — relatively efficient. If you're selling STCG lots at 31.2%:

Item	Amount
LTCG	₹15,00,000
Indian STCG tax (31.2%)	₹4,68,000
FX + fees	₹79,400
Total cost	₹5,47,400
Net INR received	₹87,52,600
Effective cost	5.89%

The holding period decision is worth roughly ₹2.8 lakh on a ₹93 lakh repatriation.

---

When to repatriate (and when not to)

Good reasons to repatriate:

• Specific INR-denominated goal (home purchase, child's education in India)
• Reducing concentration risk
• Portfolio rebalancing

Not a good reason:

• Fear of US market volatility — the FX conversion cost means you pay to exit and pay to re-enter. For long-horizon wealth building, staying invested usually wins.

Tax-efficient timing:

• Repatriate LTCG lots (24+ months) before STCG lots
• Time large repatriations across financial years to avoid surcharge thresholds
• If you have harvested losses in India from other assets, use them to offset gains

---

The one-line version

For LTCG positions, total repatriation cost from a US portfolio to India is typically 2.5–3.5% (tax + FX). For STCG it's 5–7%. Use the repatriation cost calculator to plan before you sell.