New Delhi, Aug. 10 -- Are you an Indian student studying in the US, or planning to pursue higher education there? If you are also looking to invest in stocks in India or the US, it is important to understand how the tax and foreign exchange rules apply to you.

Indian students studying in the US can invest in both Indian and US equities. However, simply being an F-1 student does not determine which rules will apply to your investments.

Your status needs to be looked at separately under the Foreign Exchange Management Act, 1999 (FEMA), Indian income tax laws and US tax rules. Each framework has its own test for determining whether you are treated as a resident or non-resident, and that can affect where your investment income is taxed and ...