Invest in Hobonichi stock from India

Yes. Indian residents and NRIs can buy Hobonichi (3560) shares directly through Paasa. Hobonichi is listed on the Tokyo Stock Exchange, in the Specialty Retail industry. Your money leaves India under the RBI's Liberalised Remittance Scheme and the shares are held in your own name at Interactive Brokers.

Usually more than one, and not a fraction: the Tokyo Stock Exchange typically trades in units of 100 shares. At ¥5,200.00 a share, size the order by the lot, not by the share.

Japan withholds a preferential 10% on dividends for Indian residents under the India–Japan DTAA rather than the higher domestic rate, and the tax withheld can be claimed as a foreign tax credit in India. Dividends are taxed at your slab rate in India. Hobonichi’s current yield is 1.73%. Paasa's dividend report lists the gross dividend and any tax withheld for each payment, which is what you need when you file.

Japan generally does not levy capital gains tax on non-resident individual investors. In India, gains on shares held for more than 24 months are long-term and taxed at 12.5%, and gains on shares held for 24 months or less are short-term and taxed at your income-tax slab rate. Both are worked out in rupees at the JPY/INR rate on the day you bought and the day you sold, so the currency move is part of the gain. Paasa's capital-gains statement gives you the figures for your return.

Japan levies inheritance tax on Japan-located assets such as direct stocks, with an exemption of ¥30 million plus ¥6 million per statutory heir. The rule looks at everything you hold there, not at Hobonichi alone.