Stocks(RSU) in Freshworks

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.

Hi, I have been working in the Software Industry for the past 9 years. I feel like I have made a good use of my time and money and maybe some of my lessons can help you folks as well. Recently did a calculation for my NW and I am happy and proud to see my NW crossing 2CR+. I have 0 debt and do not own a house. Here is how my portfolio look like TC: 1.3 Cr YOE: 9 I am happy to do an AMA. Ask me anything about tech, career, love, marriage, money management, therapy, songs and movies. #Ask Me Anything #ama #amazon #atlassian #google #startups #bengaluru #networth #money management #finance #india Sorry if delay in responses, I'll answer all your questions eventually.

What are your net worth targets and goals by age? Here's mine: 25: 10L ✅ 30: 50L ✅ 35: 1.5 Cr 🟡 40: 3 Cr 🟡

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

does anyone know if flipkart give esops or RSUs to their employees? in esops you have to pay money to get them after vesting whereas RSUs are given directly upon vesting without you paying money

Truths about ESOP 101 After working in multiple fast growth startup’s and having been part of multiple buybacks as well as being in the startup ecosystem for a decade I want to put to bear my pov about creating wealth through ESOP. Like any other randomised event, ESOP also follows Pareto principle which means a very small number of people within the company ever make sizable wealth that they elevate to the top 0.1% of the country. The Pareto also applies with companies; significantly small minority of companies in India have employee friendly policies which enables an employee to create wealth. Most startup’s have dark patterns within their esop policy which either locks you in for insufferable durations or forces you to pay exorbitant taxes to gain the right to exercise your esops when you are leaving the company. Survivorship bias plays a huge role in enabling the narrative that esop is a great wealth generating tool leading to rude awakening for an employee after they join a company. This doesn’t mean you can’t make wealth, it just means don’t get carried away by narratives and take preventable errors in your career. Always talk to multiple people in startup’s and ask relevant questions to understand esop policies better. Like everything else optimising only for esop for wealth creation will mostly not result in it.

Does RSU also be considered while negotiating when switching. Do they consider the present tc as itself with stocks while offering a package ?

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.