How to buy RTX Corporation (RTX) stock from India

Yes, an Indian resident can buy RTX — legally, in USD, under the RBI's Liberalised Remittance Scheme (LRS). Buying is the easy 10%. The 90% that decides your outcome is tax, estate-tax exposure, and sizing. RTX pays a dividend, so US withholding and Form 67 are part of the picture.

The 30-second version

• Legal and simple. Buy RTX via any India-facing platform (Vested, INDmoney) or a global broker (Interactive Brokers, Rovia). Whole shares or fractional.
• Defense plus commercial aerospace hybrid. Second-largest US defense contractor — Raytheon missiles on one side, Pratt and Whitney engines plus Collins Aerospace on the other. Yield roughly 2-2.5%.
• US dividend WHT is 25% under the India-US treaty; reclaim it as foreign tax credit via Form 67 (becoming Form 44 from TY 2026-27).
• India tax on capital gains: hold more than 24 months for 12.5% LTCG (no indexation); sooner is your slab rate. Section 112, not the friendlier 112A.
• The trap most miss: directly-held RTX is a US-situs asset — above $60,000, your estate faces up to 40% US estate tax, with no treaty relief.
• If your thesis is "global defense," ITA, XAR, or PPA give you RTX alongside LMT, NOC, GD, and BA — without single-program risk.

Quick facts

Can an Indian resident buy it?	Yes — fully legal under the LRS
Ticker / exchange	RTX / NYSE
How	India-facing platform (Vested, INDmoney) or global broker (IBKR, Rovia)
Minimum	A fraction of one share (fractional lets you invest an exact rupee amount)
Dividend	Yes — roughly 2-2.5% yield, consistent grower
US withholding	25% under the India-US DTAA (file W-8BEN with your broker)
India tax on gains	12.5% LTCG after 24 months; else your slab (Section 112)
Estate-tax risk	US-situs above $60k means up to 40%, no treaty relief
Annual compliance	Schedule FA disclosure + Form 67 (Form 44 from TY 2026-27)

How to buy it — 3 steps

1. Open an account and finish KYC. Pick an India-facing platform (Vested, INDmoney) or a global broker (Interactive Brokers, Rovia). File your W-8BEN during onboarding — this locks US withholding at the treaty 25% instead of 30%. New to this? Start with how to invest in US stocks from India.
2. Fund it via the LRS. Remit from your Indian bank (cap: $250,000 per FY). 20% TCS applies above ten lakh rupees in a year — a creditable prepayment, not a cost. See LRS explained and the LRS and TCS calculator.
3. Place the order. RTX trades in the $130-180 range — a more accessible absolute price than LMT, so one or two whole shares is realistic for most retail Indians; fractional lets you size by rupees. Reinvest dividends manually unless your broker auto-DRIPs.

The tax that actually matters

RTX pays a dividend, so two tax tracks apply: 25% US withholding on every dividend, and Section 112 on capital gains when you sell (foreign shares don't get Section 112A):

Holding period	Treatment	Rate
24 months or less	Short-term	Your slab rate (up to roughly 30% plus surcharge)
More than 24 months	Long-term	12.5%, no indexation

On dividends. The US broker withholds 25% at source under the treaty (with a valid W-8BEN). The gross dividend is taxable in India at slab; claim the 25% as FTC via Form 67 before your ITR — from TY 2026-27 this becomes Form 44. Most Indians pay no double tax, but the paperwork is annual. See dividend withholding and Form 67.

Worked example. Buy 5 shares at $140 when USD/INR is 86 → cost 60,200 rupees. Sell 28 months later at $175 when USD/INR is 88 → proceeds 77,000 rupees. Taxable gain 16,800 rupees; LTCG at 12.5% = 2,100 rupees. Gain is computed in rupees, so a weaker rupee amplifies it. Model your own with the US capital-gains calculator; full rules in how US stocks are taxed in India.

The $60,000 estate-tax trap

Directly-held RTX is a US-situs asset. Above $60,000 of US-situs assets, the estate faces up to 40% US estate tax — and the India-US treaty does not cover estate tax. RTX's lower share price makes the threshold feel further away, but a few hundred shares plus other US-listed names quickly cross it. The fix (pooled or fund structures rather than direct shares) has to be a deliberate choice made before the position gets large. Full detail: the $60,000 estate-tax trap.

Buy the stock, or get RTX through an ETF?

If you want…	Best route
A concentrated bet on missiles plus engines plus avionics	RTX directly
"Defense and aerospace will outperform" exposure	ITA, XAR (defense-themed) or PPA (aerospace) — RTX is a top holding alongside LMT, NOC, GD
Broad US large-cap with a defense tilt baked in	QQQ holds RTX only at a very light weight; VOO and VTI hold it proportionally — small exposure
The least single-program risk	A defense-themed ETF

RTX is a top-two holding in iShares US Aerospace and Defense (ITA) and SPDR Aerospace and Defense (XAR) — often the single largest weight given its defense plus commercial mix — with overlap in Invesco Aerospace and Defense (PPA). A defense ETF gives you RTX plus LMT, NOC, GD, and BA in one ticker, one Schedule FA entry, and cleaner estate-tax treatment. Compare in direct stocks vs US ETFs and best US ETFs for Indian investors; broader case in US ETFs for Indians.

The business in one screen

What it is: the second-largest US defense contractor and a defense plus commercial-aerospace hybrid across three segments — Raytheon (Patriot, Stinger, SM-6, Tomahawk, AMRAAM, radar, integrated air defense — direct beneficiary of munitions restocking from Ukraine, Israel-Houthi, and Taiwan deterrence), Pratt and Whitney (the GTF on A320neo, F135 on F-35 sustainment), and Collins Aerospace (avionics, cabin interiors, mission systems — levered to commercial recovery). The GTF powder-metal contamination from 2023-24 caused a recall and inspection backlog that dragged the engine business; by 2026 that overhang is largely worked through.

Bull case	Bear case
Missile-demand cycle: Patriot, Stinger, SM-6, AMRAAM production scaling	GTF powder-metal recall costs not fully behind
GTF overhang lifting through 2026 — Pratt margin normalisation	F135 program politics — Block 4 cost overruns under scrutiny
Collins Aerospace strength on commercial-aerospace recovery	Heavy customer concentration on the US DoD
Trades at a discount to LMT and NOC on EV/EBITDA	Civil-aerospace cycle exposure — Boeing program delays hit Collins
Consistent dividend grower with disciplined buybacks	Valuation has rerated higher recently — less margin for error

Exact valuation is in the live widget above.

Our take

Verdict: BUY — the missile cycle, GTF overhang lifting, and a relative-valuation discount to peers give RTX a better risk-reward than LMT today.

• Raytheon is the missile-cycle pure play. Patriot, Stinger, SM-6, Tomahawk, and AMRAAM are exactly the inventories being restocked across NATO, Israel, and the Indo-Pacific — production capacity is ramping with multi-year demand visibility.
• GTF overhang is largely past. The 2023-24 powder-metal recall dragged Pratt margins and dominated headlines; by 2026 the inspection cycle is mostly worked through and the engine business is normalising into the strongest narrowbody delivery cycle in years.
• Hybrid exposure plus relative-value discount. Collins gives RTX commercial-recovery torque pure defense names lack, and RTX trades at a discount to LMT and NOC on EV/EBITDA — pair that with a 2-2.5% growing dividend and consistent buybacks.

Compliance note. Vested.blog is not a SEBI-registered Research Analyst. The above is an editorial opinion for educational illustration only — not investment advice and not a regulated stock recommendation. Vested.blog is published by Rovia; the publisher and its affiliates may hold positions in stocks discussed. Make your own decisions or consult a SEBI-registered advisor.

Risks to size for

• GTF tail risk: the powder-metal recall is largely worked through, but additional inspection findings or warranty true-ups can still surprise quarterly results.
• F135 program politics: Block 4 cost overruns and the ECU vs re-engine debate inject political risk into a large sustainment franchise.
• Customer concentration and civil cycle: US DoD dominates the defense side; Collins is levered to Boeing and Airbus delivery rates, so any Boeing program delay drags it.
• Currency: your return is in USD but you spend rupees — see the rupee-dollar effect.

Two things people forget

• Schedule FA and Form 67 (Form 44 from 2026-27): disclose RTX in Schedule FA every year you hold it — even at a loss. Because RTX pays a dividend, also file Form 67 to claim FTC for the 25% US withholding. Non-disclosure carries Black Money Act penalties. Use the Schedule FA helper.
• RTX vs LMT: LMT is purer defense with a longer dividend-growth streak; RTX adds commercial-aerospace torque via Pratt and Collins at a relative discount. Many Indians end up holding both — or a defense ETF that holds them in roughly equal weight. Compare with how to buy Lockheed Martin from India.

Bottom line

Buying RTX from India is easy and legal. What needs thought: Section 112, the $60k estate-tax trap, and annual Form 67 (Form 44 from 2026-27) for the 25% US dividend withholding. The upside: a 2-2.5% dividend grower, the missile-restock cycle through Raytheon, GTF margin normalisation at Pratt, and Collins levered to commercial recovery — at a discount to LMT and NOC. If your real thesis is "global defense," ITA or XAR gives the same exposure without single-program risk. Start at the US investing hub.

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This article is general information, not personalised investment, tax, or legal advice. Rules, rates, and thresholds described here are as of 2026 and can change; verify the current position and consult a qualified advisor before acting.