Restricted Stock Units (RSUs) Explained | Taxation rules in India I Declare RSUs in Schedule FA

[@Nama_CA]

Capital Gain calculation: There’s an additional method people use to calculate capital gains on foreign assets. In this approach, they utilize the exchange rate as the TT (Telegraphic Transfer) buy rate from the immediate preceding month in which the asset was sold or transferred. This conversion rate is applied to both the buying and selling prices. In our example: We sold the share on 20th October 2023. So, here you need to consider the TT buy rate of 30th September 2023, which was Rs. 82.4 per dollar. In 1st entry: Buy value will be: 4670*82.4 = 3,84,808/- Sell value will be: 7480*82.4 = 6,16,352/- Using this information, you can calculate your capital gain. Additionally, you can apply indexation benefit for long-term capital gains, as explained in my video. However, it’s important to note that this method results in a discrepancy between the cost of acquisition reported in Schedule CG (Capital Gains) and Schedule FA (Foreign Assets). In my video, I used the safer way and took the actual cost of acquisition. Ultimately, choose the method that aligns with your judgment. Links to Useful videos and sites: How to File Form 67: kzbin.info/www/bejne/pJWaoaKeiNyiepo ITR-2 with Foreign Assets: kzbin.info/www/bejne/bKjFoWypZ5lssJo ESPP and its Tax Treatment: kzbin.info/www/bejne/n2aVhWRuerFgsNE Telegraphic Transfer Buying (TT Buying) rate for the conversion of foreign currency to INR: forexrateindia.com/sbi-bank-forex-rates-30-12-2022/ CII for Indexation: incometaxindia.gov.in/Pages/utilities/Cost-Inflation-Index.aspx Link of Income Tax site for Article number of nature of income of respective country as per DTAA agreement: incometaxindia.gov.in/pages/international-taxation/dtaa.aspx

[@jaswanthb5692]

Thank you Very much for this info mam. This helps lot of people to gain knowledge on how to file ITR.

[@venkateshtata3935]

Madam, Thank you so much for this video on this concept as I couldn't find in CA Final books now I am so happy with this. How to contact you regarding Tax planning of HNI.🙏🙏❤❤

[@shreeexplore]

Hello mam , if I received perquisites rsu tax is already withheld or deduct krke dete h so firstly tax us govt ko stock pr dia then India pr full value pr again tax de rhe h toh us wala tds relief le sakte hai na form 67 mei dividend ko chod k.

[@venkateshtata3935]

​@@shreeexploreIn USA there is no tax on capital gains and the tax deducted paid to indian govt there is no double taxation and hence u can't claim rebate by filing Form 67.

[@shreeexplore]

@@venkateshtata3935 suppose 100 shares vested in my account and out of 100 shares 25 withheld. Then whole 100 shares at fmv taxable in my salary head as perqusite so there is double tax on that shares ? Shall i file rebate under head salary

[@gopialluri6661]

I have been waiting for detailed video to declare RSU. It is one of the best video on RSU with complete information. thank you.

[@Itsmylife1311]

Thank you Mam. I was search from long time. One of the best video on RSU with complete information. Keep it good work.

[@Nama_CA]

Nice to hear this…thank you

[@sanket492]

Awesome video with detail. Thank you Namrata mam your videos helped me lot during ITR2 filing

[@Loveuzindagi0511]

Got full understanding on RSU now….thank you for sharing information

[@Nama_CA]

Thank you for liking my video

[@sriharimakam3288]

Wonderfully explained, thank you for the video, i was able to smoothly file my returns without issues, however given the glitches of the desktop utility, it took me 3 days to figure a simple issue with the utility, but with your video, I found the issue and solved it. thank you again.

[@SinghDavinder007]

Very very informative video mam.....Thanks🙏🙏

[@Nama_CA]

Glad to hear this...Ty

[@madhurigupta3378]

Thank you mam this video is very helpful for the return filling and also clear all the concepts.

[@photosvideos8762]

Why are you running like hawada express. 😂 it’s very very informative very well explained. Just reduce the speed please.

[@Nama_CA]

I think you can use 0.75x speed 😂

[@purushothamac7571]

I have been waiting for this, Very helpful, thank you very much madam

[@thanvear4388]

Best video as always ! Very detailed and all aspects explained

[@alt_realm]

Can you please clarify below doubts. 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 RSUs in Schedule FA? 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 RSUs from 2022 and 2023 in the current FY 2023-2024 filing? 2.3. 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. Which is true?

[@DevTechGpt]

same doubt

[@rakeshatkiit]

@Nama_CA, Would appreciate your help on answering it.

[@crazycreations6384]

Same kind of doubt. please clarify

[@alt_realm]

I got the answers for my questions. 2.1. Yes even if we are holding RSU and paid tax, we need to disclose in schedule FA. 2.2. If it is not disclosed in previous filings it can be disclosed in current filings (suggested as per one CA) 2.3. We need to disclose in schedule FA that is mandatory if a person is holding shares. Example: If the employee receives RSU and is a resident of India and pays tax to resident of India. His global income is taxed in India. If "x" shares gets vested, then employer sells "y" shares as tax to Government of India and employer credits the remaining shares to brokerage account. The remaining shares which is credited to brokerage account is mentioned as perquisites in Form 16 and part of your total taxable income. Total taxable income = salary + vested RSU for that financial year will be mentioned in form 16. So no extra tax will be payable by us. When filing ITR2 we should mentioned in schedule FA. The schedule FA calculation is little tricky and it better to take CA help for this.

[@Prasanna_Krishna_]

@@alt_realm Thanks buddy. You cleared my doubts

[@KumarSadashivan]

Best video describing how to report RSU holdings/capital gains madam. I've one question on currency conversion. For reporting in Schedule FA, I see you are using SBI TTBR (Telegraphic Transfer Buy Rate) for calculating "Initial Value of Investment". TTBR is to be used only when sell foreign asset and get the proceedings in INR correct? For calculating "Initial Value of Investment should we not be using TTSR (Telegraphic Transfer Sell Rate), as this will be higher and hence using TTBR will show reduced Initial Value of Investment and thereby attracting extra capital gains.

[@subodhtalks-stocks]

Videos are really good and informative, but it's a bit fast. To understand fully, i had to watch twice atleast with pauses in between

[@Nama_CA]

Please let me know in which part it is fast… because now a days people like short videos only Will be very greatful if you reply

[@subodhtalks-stocks]

@@Nama_CA Don't worry abt people liking short video's. They are looking at reels, not information. 😀 For me the part where u do the calculation in excel sheet and then fill in specific sections of ITR2. The calculation in Excel for me is new info, so kind of need to read the details u have mentioned and follow with what u r explaining.

[@Nama_CA]

Thank you for sharing your views…will try my best and improve as per your suggestion.

[@bhaveshupadhyay6158]

I really don't know what was the rush to present at such high speed..... you know everything but not the viewers.

[@natrureviews3998]

Hi Mam Thanks for the nice informative video. Could you please share the excel sheet which you used in this video with us for our reference.

[@janakiraman4456]

Mam , you are showing Calender year for RSU , what is if the shares are vested after december and upto march of the FY 2024 ?????

[@raveeshmittal2241]

Thanks a lot for a detailed explanation. I have a question regarding capital gains from RSU of a US based company. I have sold some RSU's this year in the month of january. Since they are under our financial year 2023-2024 but not in US financial year, do need to declare them while filing ITR for assessment year (2024-25) or should they be declared next year?

[@prathmeshm019]

You r required to declare in AY 2024-25 Coz it's falling in fy 23-24

[@yassuamara8750]

Few people are mentioning initial investment number should be 100% of taxes and rest 31.2% cutoff for tds should be reported in Capital gains with gains as 0

[@amber_p]

I selected three sections in CG and made entries against these sections: a) Equity share or unit of equity oriented Mutual Fund (MF) or unit of a business trust on which STT is paid under section 111A or 115AD(1)(b)(ii) proviso (for FII) b) Equity share in a company or unit of equity oriented fund or unit of a business trust on which STT is paid under section 112A c) From sale of assets other than all the above listed items. But still, loss from c) is being treated as 15% slab and being offset against a). Do you have some tips for this.

[@kandarp434]

Thank you so much for such a nice video 🙏

[@superrb24]

Hello, thanks for the explanation its really informative. Also can I have the excel file you doing calculation on

[@Nama_CA]

Glad to hear that. This sheet has only multiplication and addition. I think anyone can create according to his requierment.

[@superrb24]

@@Nama_CA Yes but still if you can provide it will be very helpful, also if you tell about Germany taxation like mostly videos are on US DTAA only and no one ever posted on Germany

[@muskan77639]

How to show interest earned from US broker account in itr? in what all schedule i need to fill it

[@purushbhija5426]

Hi mam Superb video. Can you also explain how to interpret the P&L statement of foreign trades( e trade from morgan Stanley). Like our stocks p&L statement

[@vikaSuratgarh]

Thanks for this detailed video, it's really helpful. I have short term capital gains losses from RSUs, is there a way to show this negative income in FSI schedule? I'm not able to show a negative value in FSI schedule.

[@anilkinikar]

Your videos are very informative and detailed. They are very useful. But please go slowly. You talk very fast.

[@sanchitkhandelwal]

Hi, do we need to declare RSU In schedule even without sale ? If I'm holding rsu do I need to declare it in my itr ?.

[@sanket492]

Mam i have one query related to RSU, do I need to show share withheld for tax as forced sale of shares in Schedule FA and Capital gains. E.g 10 RSU are to be vested so company held 3.12 shares and deposited 6.88 shares to my account so should i show this 3.12.share as sale with sale price same as share vest price so the gain will be zero

[@RSingh-]

Thanks Mam for this video. In your example, the 32 shares (out of 100) that were withheld by the employer and were sold to pay the tax, aren't they required to be reported anywhere? e.g Capital Gains with net gain of 0. Pls advise.

[@abis3638]

@Nama_CA can you please clarify this query, I also have this doubt. Also there is a difference between FMV and actual sell value of sell-on-cover shares. Can you pls confirm if this difference can be declared as a short term loss.

[@paragmaheshwari8813]

Hi, do we need to show capital gain (i.e. 0 ) for the shares which got deducted for tax purpose at the time of vesting?

[@nishthagupta588]

Mam can you please share this excel file you used? I will download and use the same format for my calculation

[@elumalai3742]

Madam please ESOP and FA for share holding filing video madam, thank you 🙏

[@Nama_CA]

Will try

[@pavithraravi5642]

Can you make a video on section 54F applicable for long term capital gains

[@akashmishra4019]

I don't have TIN number and also do not have any passport number Kindly inform me what I can use in place of this during ITR filing

[@RajuRajuRaju11]

Hi Mam, is it possible to attach the excel sheet that shown in the video.

[@sanam409]

Hello Mam, i am getting RSU of foreign company as part of my compensation, but there is no income in form of dividend/ interest and i have not sold any vested shares so, no capital gain. Should i fill itr 1 or itr 2 form. Please advise. Thank you very much.

[@WindsonMagic]

Hello, Thanks for the wonderful video. Q1: "Total gross amount paid/credited with respect to the holding during the period" is it before or after taxes? Q2: "Sell for Taxes", What if I sell RSUs just to cover taxes and hold the rest? Can you please let me know? If I vest 25 shares and instead of selling them, I want to keep them. So to pay taxes, @34% I offset by selling 34% of 25 shares which are 9 shares. How to do entry for such shares?

[@madhusudanankaskar3989]

Mam, while filling itr for FY24, i have below doubts. Q1. Do we need to pay tax on dividend if dividend is declared after 31 Dec 2023 ? If no then when do we need to pay the tax on dividend. Q2. If shares are credited in Jan 2024 and in sold then on Feb 2024 then do I need to declare STCG for them while filling ITR for FY24 ?.

[@kumargv]

An amazingly detailed video. Thank you. One question - My RSU shares are held in a custodial account. Do i need to fill both A2 ( details of custodial account) and A3 (details of shares held in the custodial account.

[@Nama_CA]

Yes.

[@Omniman2]

Hi, what if I havent sold any of the RSUs, how should I declare schedule FA ?

[@harshvardhana5231]

I have a doubt about dividend received between 1 jan to 31 March?

[@niralighelani]

The cost of acquisition of RSU is zero since they are awarded by the company and the employee does not have to pay any consideration for that

[@dhawal28pawar]

In case of long tern capital loss , how will be fill FIS schedule and FA schedule please explain 🙏

[@madhavareddy4269]

Very informative. Thank you mam. Can you also please do a session on schedule assets and liabilities? It is unclear whether entire assets needs to be declared as on 31st March or assets acquired only in particular FY needs to be declared?

[@Nama_CA]

Entire assets as on 31st march

[@tejagadhamsetti6724]

Hi mam, Thanks for your detailed explanation. I have one query - Do we need to select "yes" for unlisted shares question (in Part-A - General Information - filing status) and report RSU shares held for the period Apr- Mar, as they come under category of unlisted shares or reporting only in Schedule FA is sufficient?

[@nimalpravin9096]

Hi mam thanks for the detailed value. I Just have a small clarification . If a person holds RSU shares in USA which was allotted in March 2023.and he has sold the shares in March 2024. Now the capital gain received should be shown while filing ITR for Fy 2023-24 or it should be shown in Fy 2024-25. Since the financial year followed in USA is different from India (i.e. )from Jan to dec

[@nithin.kumar.m]

Thank you very much for an excellent video. One question. If I am holding RSUs from past 5 years and there are 12 vestings per year, do I need to add 60 rows of data in schedule FA? That would be too cumbersome

[@SaurabhDube195]

what can i do if i have not declared foreign assets previous years?

[@teamitd3448]

Hello Madam, My total tax liability in India is currently zero. I have a Foreign Tax Credit of ₹13,122. While I understand that the FTC can reduce my tax liability, I am uncertain if it can be claimed as a refund. Can you please confirm whether this amount can be refunded, or if it remains non-refundable?

[@karifkhan]

Hi Mam, I received the RSU from my company 2 time but till now there is no single RSU got vested, now do I need to declare about these unvested shares in ITR-2, If yes then which option I need to declare. Thank you

[@pranavsharma7479]

I have one question, when the shares are vested there is tax amount decided on the vesting date but the till the selling the stock price is lower than vesting date so in p&l its showing loss. How to carry forward this loss , should we do it or not. Thanks

[@raginiravindran181]

Can u share that dummy form 16excel format

[@amangoel8069]

Dividend received and cap gain during Jan 24- March 24 ...in which Ay we have to show plz clear this doubt mam.

[@shreeexplore]

What if we have short term loss and mutiple times receipt rsu in a year show individual or cumulative?

[@starwarsfan9575]

If shares vested in February then they shouldn’t be declared in schedule FA. But should they be declared as unlisted shares i hold?

[@Nama_CA]

If they are listed in any stock exchange, you don’t need to declare in unlisted shares

[@starwarsfan9575]

@@Nama_CA even if they are listed outside India? thanks so much for the response🙏🙏. unable to find concrete information online only your video explained the details very well. One additional thing i am unclear about is regarding disclosure of foreign account in Schedule FA. Talking about the account which company has opned in US where i have the RSU stock plan. Not sure about the account type, When i see my account details it mentions individual brockerage account. I want to understand do i need to declare it in table A1 or A2 in Schedule FA. Also will this account type be “Legal owner” or “beneficiary”. FYI I operate it myself and can sell the share’s myself, only the stockes are vested as per the vesting schedule shared at the time of RSU grant. Apologies for the long question 🙏

[@Rpboost125]

If we have net loss on short term capital gains dont we have to fill FSI as I dont see negative values are accepted in the fields of FSI, BFLA, CYLA

[@Nama_CA]

Yes, you are right so you don't need to fill Schedule FSI in case of loss.

[@user-zs8io2gn4r]

I received dividend from foreign company in February 2024, with withholding tax of 25℅ Since dividend received in Feb. 24, it is not reflected in 1042S (income certificate of 2023). As resident indian, tax is payable on accrual basis. How dividend of Feb. 24, will be shown in ITR and how I can get tax relief (as per DTAA).

[@Nama_CA]

You can use any other statement like tax withholding statement from the deductor or broker for Foreign tax credit. If you do not have any proof of tax withholding for Jan - Mar 2024, then file your dividend income on calendar year basis.

[@amangoel8069]

​@@Nama_CAnormally dividend income have to filed on fy basis of we have jan- March tax doc?

[@vijaykumarmaheshwari5444]

Please clarify below doubts 1.Which type of stocks would have to be reported under section D of FA shedule 2.Which value would be reportd of foreign company stocks in AL schedule in ITR

[@dhru1tanna154]

Hi Ma’am, thank you for the video. I have a quick question. For a non-listed company, we have been provided RSUs, do we still need to disclose the vested stocks in ITR?

[@Nama_CA]

is it an Indian or Foreign company?

[@yktyagi]

Do I need to show US company shares bought in year 2022 or RSU received in year 2022 in schedule FA (for AY 2024-25)?

[@Nama_CA]

Yes

[@ArkabrataKundu]

Very useful video, But one query- How to know / calculate the Peak Price per share in any year? Is there any website or any source from which that can be obtained?

[@niralighelani]

Google will help out with that by custom selecting the period and checking the highest price within that period. Multiply that with TTBR and number of shares

[@ArkabrataKundu]

@@niralighelani Okay, thank you

[@mithileshsomani9190]

Hello Mam, I am also CA. Thank you for giving such nicely explained video. I required your guidance for the below query could you please help me out. Mr. A have allotted US listed company RSU and Tax is paid in India by company by way of selling share in US eg. 5 RSU vested so it credited and after 2 days 2 RSU sold by company to pay tax then whether we required to show it under C. G. for 2 units and In FA how much it will show in A3 whether 3 or 5? Also Whether RSU required to in FSI schedule for salary income?

[@Viralclips029]

What is the tax rate on the RSU? will it be a standard of 32% or will it depend on the which tax slab we will fall

[@sumeetsanwal541]

For no of stock, is it the number of stocks that got granted or it is the no of stocks you were left with after stocks were sold to offset tax ?

[@hari_vinu_4]

Was waiting for this video. Thanks ma'am. One doubt, if I have very little dividend and don't want to claim DTAA benefit, do I need to fill Schedule FSI, TR and Form 67? I have only 20rs foreign dividend income!

[@Nama_CA]

Welcome And Dont claim DTAA but add in income that will give you learning also.

[@hari_vinu_4]

@@Nama_CA So you mean no need to file schedule FSI, TR and Form 67 eventhough I have received rs 20 as foreign dividend? Will that lead to any penalty since we are not filling that?

[@AnaghaCh]

@name_ca What to consider if TT buy rate is not published by the SBI on the date the units were deposited in our account (I haven't sold the shares yet. Only for declaration purpose)?

[@prathmeshm019]

Consider preceding day rate

[@yogeshjain3681]

hello mam, can you provide me tax rate on foreign salary as per USA DTAA. Thks

[@pranavsharma7479]

where to mention brokerage charges ?

[@pranavsharma7479]

If someone didn't sold their shares then what to mention in capital gain end date and capital gain

[@Nama_CA]

That means there is no capital gain. In that case, you do not need to fill schedule CG.

[@pranavsharma7479]

@@Nama_CA thanks for the reply

[@pranavsharma7479]

If i haven't sold my stocks yet and all dividend is getting reinvested into buying stocks then what should we mention

[@Nama_CA]

In Form 67, you do not need to indicate whether your dividend income has been reinvested. This form is solely for claiming foreign tax credits. However, if your dividends are being reinvested, you must declare the resulting shares in Schedule FA of your ITR.

[@basavarajams7]

@@Nama_CA First dividend will be taxed then remaining amount will be used for the re-invest, so ideally we should take benefit of the F67 right ? correct me if i'm wrong.

[@ManojKumar-sq2ps]

Very fast pace. Could have been a bit slow.

[@Sayak94]

Hi Ma'am awesome explanation. So for transactions (rsu alloted in Feb 24) post Dec 2023, we won't need to declare in this year's ITR? Also can you share the excel file you showed in the video.

[@manikantatangudu1661]

Bro, I too have the same doubt. Have you got the answer?

[@manikantatangudu1661]

Hi bro, I too have the same doubt. Have you got the answer?

[@gopialluri6661]

@Sayak94 and @manikantatangudu1661 I think we need to declare all holding in the calender year (1st Jan to 31st Dec). Please let me know if I am wrong.

[@durgaande14]

Yes..we need to declare all assets that we hold during jan to dec

[@dhruvv7]

Excellent explanation. Have a doubt on declaring FA Scenario in calendar year 2022, 100 shares vested. So in return for FY April22-Mar23, i showed 100 shares as FA In calendar year 2023, 140 shares vested. In return for FY April23-March24, should i show just the new 140 shares or old 100 as well, since i havent sold those 100 shares yet? Thanks

[@Nama_CA]

Thank you I have explained the same scenerio in my "ITR 2 with foreign assets video.

[@Satyajeet-Sah]

I have claimed Form 67, now can I file ITR 4 on presumptive basis?

[@yashpalgoel6086]

If rsu 100% sell on vesting date than is it required to show in itr? If yes than how to show in itr & in which shedule. Pl gide

[@PlasticSquare]

Hi Mam, my foreign RSU were vested in Feb 2024, employer added full consideration as perk and added to my income as perquisite. Broker also withheld some amount for taxes. Can I claim DTAA rebate in my FY24 tax filing or should I wait for next Financial year since foreign assets are declared as per calendar year?

[@Nama_CA]

There is no withholding tax on RSU vesting. Whatever tax is deducted, will be paid or already paid to the Indian IT department. I have also explained in the video.

[@PlasticSquare]

@@Nama_CA Lockin is now over and the shares were added but reduced quantity. Some units were withheld by broker for tax. I have paid double tax essentially. Tax on full amount to India and portion of tax to UK.

[@PlasticSquare]

Thanks Maam, I just saw my payslip, company had refunded the withheld portion in my salary of that month.

[@sonalichakraborty4108]

I have some query

[@mridusmitaroy1380]

Hello Ma'm. If 100 RSU were vested on may 2022 and 100 RSU on may 2023. and total rsu sold on april 2024. so only we have to mention on schedule FA right ? and not in schedule CG? since it has been sold on calendar year 2024 and not on calendar year 2023. so next year ITR 2 fiing we have to mention in Schedule CG about our capital gains?

[@munisai.m2261]

yes for FY 24-25 you should provide the necessary details and pay capital gains tax , but for FY 23-24 you should disclose the holding while filing you ITR for FY 23-24 if they listed on foreign country.

[@sriramsankaran3767]

Need help in FA schedule for tax filing , can you share the contact

[@TrendyTrend_Reels]

Can we get that sheet to calculate our use case please

[@Nama_CA]

Sorry

[@vinodj7535]

Mam, Do I need to disclose how many share I still hold in ITR apart from sold one. If Yes, then can you let me know where I can disclose it in ITR.

[@sanchitkhandelwal]

Hey have you find your answer ? If yes then please tell what needs to be done

[@JulyStar9]

Try speaking slowly to make it more effective.

[@backtobasics6865]

sent mail, need help in ITR filing please help with process and your fee

[@abhijeetpandey7258]

mam, can you help me in filling ITR @Nama_CA

[@Nama_CA]

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