Taxation on shares received as performance bonus

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Can someone throw light on RSUs(US based) taxation in India 1. How are taxes deducted? 2. Does the taxes gets deducted in India as well as the US? 3. What is the right approach to pay these taxes? using shares or by salary if falling in 30% + surcharge bracket. 4. I salary is 85 lakhs and RSUs vesting per year is 50 lakhs..Then what would be taxable income? Inputs are highly appreciated.

Hi, Here's a quick summary for taxation of RSU's. This is for employees who get stocks of their parent companies listed abroad as part of their salary package. The RSU are taxed after clubbing with the salary as a perquisite and thereafter in Capital gains arising on account of holding such shares. At the time of grant: No tax liability. At the time of vesting: The fair market value of the share on the date of vesting is taxed at the slab rate by the employer by selling the shares to cover the tax liability. Example - If you have 10 RSU vested, your employer will sell 3 RSU to cover the tax liability and will give you 7 RSU. At the time of sale: After vesting, the difference between fair market value on the date of vesting and selling price is taxed as capital gain as below: a) Holding period of more than 24 months, long-term capital gain, taxable at 20% with post-indexation benefit. b) If the period is lesser, it is short-term gain taxable at the slab rate. At the time of filing ITR, you should declare the holding of foreign shares in schedule FA

Hi folks, I'm Kashish, the CEO of EquityList and Founder of Cloud Capital which I run as a solo GP. A little bit about what we do: EquityList is a full-stack equity management platform by AngelList India. Companies across India, US and Singapore use EquityList to manage their cap table, stock options (ESOP/SAR), shareholders, and related compliances. Managing equity for 10k+ stakeholders, 250+ companies and ~$1B in stock options. Cloud Capital has deployed $8M+ in 55+ startups such as Airmeet, Rupifi, Orange Health, DevRev, ZET (OneCode) and others. I've also angel invested in startups such as OSlash, Atlys, Chronicle, Even Healthcare and others. Excited to do this AMA, and look forward to answering any of your questions about ESOPs, cap table management, investing, entrepreneurship, and more! LinkedIn: https://www.linkedin.com/in/kashisharma

I had a very basic doubt. For people who've exercised their stock options or have had some similar experience with this in the past, what's best way to limit the tax liability? My company is registered in the US - would i have to pay taxes to both the governments? Thanks in advance and have a great day ahead!

Wanted to know and understand the reality behind the terms and conditions that new startups puts while promising ESOPs at the time of joining. Please share ur experience so that everyone gets aware.

I have a friend with an offer from Coinbase in India where the RSUs will be vested on a quarterly basis. Need to understand the following things: - What is the tax on exercising the RSUs after the grant and on Selling it later? - Is there double taxation on selling it as the company is listed in US and he's an Indian shareholder? Any good blog or video on this topic would be very helpful.