Anthropic IPO: If you get shares, how will your investment be taxed in India and US? Check TCS, capital gains tax rules

An Indian resident who manages to secure shares in Anthropic IPO will have to consider more than just the investment amount. The overseas investment will trigger tax collection at source (TCS) rules when money is remitted abroad, while any gains made from selling the shares will be taxable in India.

Anthropic, the artificial intelligence (AI) company behind Claude, is set to launch its IPO at a price of $70–$78 per share. The company will list on the Nasdaq Global Select Market on 19 November 2026 under the ticker symbol ANT. The offering includes Class A common stock, and the IPO opened on 10 November and is expected to close on 17 November.

For Indian investors, however, participation in the IPO (initial public offering) will depend on the offering's geographical eligibility, access to international brokerage accounts, and the arrangements made by intermediaries. Anthropic's disclosed European retail offering covers specified European Economic Area countries and Switzerland, not India.

The ability to invest in overseas shares under the Reserve Bank of India's (RBI) Liberalised Remittance Scheme (LRS) does not automatically make an investor eligible to subscribe to every foreign IPO.

If an Indian investor manages to acquire Anthropic shares, either through the IPO or by purchasing them after the stock market listing, the investment will have tax implications in both the US and India.

Remittances under LRS for investment purposes attract 20% TCS on the amount exceeding ₹10 lakh in a financial year. The threshold applies to the aggregate of eligible LRS remittances, not separately to each overseas investment.

For instance, if an investor remits ₹15 lakh to purchase Anthropic shares and has made no other LRS remittances during the year, the bank will collect ₹1 lakh as TCS (20% of ₹5 lakh).

This is not an additional tax. The amount collected is credited against the investor's PAN and can be adjusted against the final income-tax liability when filing the return. Any excess can be claimed as a refund.

The RBI's LRS permits resident individuals to remit up to $250,000 per financial year for permitted transactions, including overseas investments.

If an Indian resident sells US stocks at a profit, the gains will be taxable in India. The holding period determines the applicable rate:

• Short-term capital gains (STCG): Shares held for 24 months or less will attract short-term capital gains tax at the investor's applicable income-tax slab rate.
• Long-term capital gains (LTCG): Shares held for more than 24 months will attract 12.5% tax, plus applicable cess and surcharge. The ₹1.25 lakh annual exemption for specified listed equity investments does not apply to US-listed shares.

For Indian investors purchasing Anthropic shares, US tax treatment will also be relevant.

• On capital gains: Generally, a non-US investor will not have to pay US federal income tax on profits earned from selling shares. However, exceptions apply if the gains are connected to a US trade or business, the individual investor meets the 183-day US presence test during the year of sale, or the shares fall under the US real property holding corporation rules.
• On dividends: Any dividends distributed to non-US investors attract 30% US withholding tax. However, eligible Indian individual investors may claim the 25% withholding rate under the India-US tax treaty by submitting Form W-8BEN.

Anthropic has stated in its prospectus that it has never paid dividends and does not expect to distribute them in the foreseeable future.

Indian residents who qualify as ordinarily resident must disclose their foreign shares and relevant overseas brokerage accounts in Schedule FA of their income-tax returns, even if they have not sold the shares or earned any profit.

Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.

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