How does the RSUs work for Indian employees

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

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!

Please share the knowledge you've about these two!

If a person is an employee of faang in india and has 1 RSU allotted to him, then he can make money in two ways: 1) He can hold that RSU. If the value of the company RSU increases (capital gains) and INR depreciates against the dollar, then later on when he sells it he would make money. 2) Another way is to sell the RSU right now and invest the money in Indian market. Then the money that he'll earn will be proportional to his portfolio performance(capital gains) Which one of the two seems to be a better way to create wealth? Let me know your thoughts.

Hi, Say a Series B (US) funded startup gives me 3000 shares which are worth $5/share. It follows the usual vesting period of 4 years. Now assume 4 years have passed and all the 3000 shares are vested but the company hasn't gone IPO. Here are my quesions - When exercising US stocks in India, what is the % of withholding tax I should pay? - Say if I exercised all the shares and if I decide to leave the company do I get to keep those exercised shares with me forever? I prefer answers from people who have exercised ESOPs before. I don't want answers like "It depends, Talk to your HR or CA". Appreciate any inputs.

I am not really good with finances, my personal portfolio size is around 15lacs, and other than that my 11 lacs worth of Amazon RSUs are vested. I have genuine question on how do you guys manage RSUs ? Do you take it out and invest somewhere else or just let it stay there in your company broker account. Can someone help me in managing it better. A bit more context about me if that helps: * currently working as SDE 2 promoted 2 quarters back only ( before that TC was around 21) and current TC is around 49lacs

Note: 1.1. The vested RSUs given by the employer are mentioned under the nature of perquisites in Form 16. The tax is already paid for it and mentioned in Form 16 as well. The same info is reflected on the ASI website. 1.2. None of the vested RSUs were sold historically. 1.3. No dividend income comes from the vested RSUs. My doubts 2.1. For this case, do we need to disclose vested RSUs in Schedule FA form in ITR2? 2.2. If I need to disclose them, I did not know about this and filed ITR1, which was processed for the last financial year. I am yet to file for this financial year. Can I disclose all the vested RSUs from 2022 and 2023 in the current FY 2023-2024 filing? Other Annoyances 3.1. There is a conflict among CAs as well. Some CAs say we need to disclose only when selling and not while holding, as taxes for that are already paid. Other CAs say we need to disclose even if we are holding and even if taxes are paid. 3.2. If the holdings are required to be disclosed, I wish the tax portal could throw an error in the UI if trying to submit the ITR without disclosing Schedule FA. As the IT Department has access to our Form 16, the IT portal can extract data from Form 16, check if it has RSUs mentioned, determine if the stock of the company is listed on a US stock exchange, and mark the Schedule FA form as mandatory. I don't think it is very complicated to implement this feature.