RSU Tax is on vesting as it will be added as income. There is no double tax. You need to only pay capital gains here.

Tell me you don't know shit about taxes on rsu without telling me lol. There's a straight 30% on rsu before vesting i.e if you were allocated 100 units then you'll have to 30 units as tax to GOI and then you capital gain tax + forex fee

Software Engineer

What is the allocation in RSUs ? There is grant date and then vesting date.

I sold mine this year which were listed on NASDAQ (MMYT). There was a straight 30% tax deduction as US govt tax and the remaining proceeds were credited to my account. Not sure if I'd have to pay capital gains taxes on them to Indian gov too so waiting and watching.

How US government tax comes into picture if you are an Indian tax resident.

Product Manager

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 th...

Welcome to Personal Finance's Private Community

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.

How does the RSUs work for Indian employees

How does the RSUs work for Indian employees- Grapevine

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.

RSUs taxation in India

Welcome to Indian Startups's Private Community

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

Taxation of RSU ( Restricted Stock Units)

Chartered Accountant

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!

Tax liability for vested stock options

Please share the knowledge you've about these two!

ESOPs vs RSUs

Product Owner

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.

RSU hold or invest in India market?

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.

Question on US based ESOPs in India

Analyst

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

How do you guys manage your RSUs ?

Software Developer

What are the taxes applied for RSU’s? (Stocks are from American company)

Project Manager

Welcome to Software Engineers's Private Community

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.

People having RSUs, please clarify

Welcome to Business Roles's Private Community

ESOPs is offered by an early age startup. What are the things I does be aware about? or ask the founders to clarify with me.

Human Resources

For US based company's employees which provide stocks - How do you file your income tax ?

1. Do you declare your foreign stocks in ITR ?
2. Do you do self filing ? Or use online tax filing websites ?
3. Do you take services of a CA ?

I'm looking for best way to do it with minimal involvement from my side. Please add service charges by websites/CA in your response as well.

PS - This is my first financial year where I hold foreign stocks. Looking for guidance. Thanks.

How do you file taxes with foreign stocks in your portfolio ?

What are the ways to reduce the stock price of a private company before it goes for IPO?

Example:

Let's say the stock price of a private company is Rs 8000 with a face value of Rs 10. So one way here is to split the stock in a 1:10 ratio making the stock price Rs 800 which might make it easier for growth of the company

Another way I'm aware is to issue bonus shares to the employees which would reduce the stock price

What other ways are there?

I'm looking for answers where there are benefits to employees and where there aren't

Private company valuations

Growth Manager

Hi GV'ers, I wanted some help with understanding how RSUs should be calculated in the CTC, especially when looking to switch to another company. Here's my thing:

On joining, I was allotted ~30k USD worth of RSUs to be vested over 4 years. ¼ after completing 1 year, then equally distributed over every quarter. Now, the 30k USD was converted to units immediately, and now the units have tripled in price.

Now, does that mean my effective CTC is the base + original price of RSUs for 1 year, or should I consider the updated price? Should I only consider what has been vested so far only, then divide by YoE? What about other RSU grants for later years? I have received an additional 10k, over 4 years, again in my second year, and again in my 3rd year. I'm planning to stay for 4 years for the original vesting schedule to complete, as the other RSU grants didn't give high enough units to make me stay.

There's also 7(+5)L health insurance that's tied here as part of other benefits, but nothing else is monetary, if that helps.

CTC calculation for RSUs

My cousin works at a french multinational. She has received a letter informing her that x shares will be granted to her over a 3 year vesting period.

Wanted to understand how will this be taxed.

How does the RSUs work for Indian employees

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