DesignTinker
DesignTinker
Stealth

Taxation on shares received as performance bonus

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.

11mo ago
Whatsinthename
Whatsinthename
Stealth11mo
  1. It will be taxed as Income from salary as and when they are vested, usually the company sells a part of shares to cover the tax liability. 2.She needs to pay capital gains if she sells the shares at a profit, STCG or LTCG.
  2. Don't forget to declare the shares in the Schedule FA in the ITR.
DesignTinker
DesignTinker
Stealth11mo

Thank you

ClumsyFog
ClumsyFog
SaaS11mo

Taxation will happen (a) at the time of vesting of shares (not stocks) and (b) once sold later for a profit. Cousin should speak with the finance team of her company - they can sell enough shares at the time of vesting to cover the taxes.

DesignTinker
DesignTinker
Stealth11mo

Thank you 🙏🏽

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