From Windows to Azure and now the AI revolution with Copilot, Microsoft (NASDAQ: MSFT) has remained a portfolio staple for global investors. But if you are sitting in Mumbai, Bangalore, or Delhi, you might wonder: Is it actually possible for me to own a piece of this tech giant?
The answer is a resounding yes.
Investing in US stocks from India is no longer reserved for the ultra-wealthy. With the rise of fintech apps and liberalized regulations, buying Microsoft shares is almost as easy as ordering lunch online. However, the process involves specific rules regarding taxes and remittances that you must know to avoid penalties.
Here is your comprehensive guide on how to buy Microsoft shares in India in 2026.
Why Invest in Microsoft?
Before diving into the “how,” let’s briefly touch on the “why.” Microsoft isn’t just a software company anymore; it is a cloud computing and Artificial Intelligence powerhouse. By investing in MSFT, you are essentially gaining exposure to:
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AI Leadership: Through its partnership with OpenAI (ChatGPT).
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Cloud Computing: Azure is a global leader in cloud infrastructure.
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Stable Dividends: Unlike many tech growth stocks, Microsoft pays a consistent dividend.
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Currency Hedging: Investing in USD assets protects your portfolio against the depreciation of the Indian Rupee (INR).
3 Ways to Buy Microsoft Shares from India
1. Direct Investment via Brokerage Apps (The Most Popular Route)
The most direct way to own Microsoft stock is through US-focused brokerage platforms available in India. Apps like INDmoney, Vested, and idirect act as intermediaries, allowing you to open a US brokerage account.
How it works:
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KYC: You complete your KYC using your PAN and Aadhar.
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LRS Transfer: You transfer money from your Indian bank account to the US broker. This is done under the RBI’s Liberalised Remittance Scheme (LRS).
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Buy: Once the funds land (usually in 24-48 hours), you can buy Microsoft shares. You can even buy fractional shares—meaning if one share costs $400 (approx. ₹33,000), you can invest just $10 or $50.
2. NSE IFSC (GIFT City)
This is a newer, smarter route. The NSE International Exchange (NSE IFSC) in GIFT City, Gujarat, allows Indian investors to buy US stocks directly.
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The Benefit: The money transfer process is often smoother and cheaper than traditional LRS bank transfers.
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The Catch: Liquidity can sometimes be lower than direct US markets, but for major stocks like Microsoft, this is rarely an issue.
3. Mutual Funds & ETFs (The Passive Route)
If you don’t want the hassle of managing a separate US brokerage account, you can invest in Indian Mutual Funds that hold US stocks. Look for:
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Fund of Funds (FoF): Schemes that invest in US-based ETFs (e.g., Nasdaq 100 ETFs).
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Note on Restrictions: The SEBI has an industry-wide limit on overseas investments. Sometimes, these funds stop accepting new lump-sum investments when the limit is reached. Always check the current status of the fund before investing.
Critical Tax Rules for 2026 (Don’t Ignore This!)
Investing in US stocks involves two tax authorities: the US IRS and the Indian Income Tax Department.
1. TCS (Tax Collected at Source) on Remittance
When you transfer money to your US broker, the Indian government collects TCS.
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Up to ₹10 Lakhs/year: 0% TCS (No extra tax deduction).
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Above ₹10 Lakhs/year: 20% TCS is deducted on the excess amount. (Note: You can claim this TCS back as a refund when you file your ITR).
2. Capital Gains Tax (In India)
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Long Term (Held > 24 months): Taxed at 12.5%.
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Short Term (Held < 24 months): Taxed at your income tax slab rate. (Note: The holding period for foreign stocks to be considered “Long Term” is 24 months, unlike 12 months for Indian stocks).
3. Dividend Tax
Microsoft pays dividends. The US will deduct a flat 25% withholding tax before the money hits your account.
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Good News: You can claim this 25% as a Foreign Tax Credit in India to avoid paying double taxes, thanks to the DTAA (Double Taxation Avoidance Agreement) between India and the US.
Step-by-Step: How to Buy Your First Microsoft Share
Ready to start? Follow this simple checklist:
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Choose a Platform: Download a regulated app like INDmoney, Vested, or use your broker’s Global Investing partner (e.g., HDFC Global, ICICI Direct).
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Add Funds: Navigate to the “Add Money” section. Enter the amount in INR.
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Approve Transfer: Your bank will ask for an OTP to authorize the LRS transfer.
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Wait for Settlement: The USD usually reflects in your wallet within 1–2 business days.
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Search & Buy: Search for “MSFT”, enter the amount (e.g., $100), and click “Buy”.
Final Thoughts
Gaining exposure to Microsoft is one of the best ways to diversify an Indian portfolio. It offers a hedge against the rupee and access to global tech growth. However, always keep an eye on the currency exchange fees (forex charges) charged by your bank, as these can eat into your returns.
Start small, invest consistently, and let the power of global compounding work for you.
FAQs
Q: Can I buy Microsoft shares without a US visa? A: Yes! You do not need a visa or US citizenship. Any Indian resident with a PAN card can invest.
Q: What is the minimum amount to invest in Microsoft from India? A: Through fractional investing apps, you can start with as little as $1 (approx. ₹85). However, considering bank transfer fees, it is usually better to transfer at least ₹5,000–₹10,000 at a time.
Q: Is it legal to buy US stocks from India? A: Absolutely. It is 100% legal under the Reserve Bank of India’s (RBI) Liberalised Remittance Scheme (LRS), which allows you to remit up to $250,000 (approx. ₹2 Crores) per financial year.
