New Delhi, Nov. 20 -- Rahul*, a Bangalore-based senior professional at Broadcom, has built much of his wealth through stock options from his US-listed employer. Like many Indian professionals in global tech firms, he never imagined that part of this wealth could be subject to taxes in the US, a country he has never lived in. He recently learned about US estate taxes. The news worried him because up to 40% of his ESOPs could be claimed by the US government after his death, which could reduce the amount of wealth passed on to his family.

The Hidden Tax on US stocks

Many Indian professionals working for multinational companies are in a similar situation. Even residents who invest in the US stock market can face this, as any form of US-list...