Vidhu Duggal & Co....

How to report RSUs and ESOPs allotted by your Employers Foreign Company

How to report RSUs and ESOPs allotted by your Employers Foreign Company

17 Jul, 2026

๐„๐’๐Ž๐๐’ & ๐‘๐’๐”๐ฌ allotted in the ๐Ÿ๐จ๐ซ๐ž๐ข๐ ๐ง ๐‚๐จ๐ฆ๐ฉ๐š๐ง๐ฒ (๐ง๐จ๐ญ ๐ฅ๐ข๐ฌ๐ญ๐ž๐ ๐ข๐ง ๐ˆ๐ง๐๐ข๐š) fall under ๐ฎ๐ง๐ฅ๐ข๐ฌ๐ญ๐ž๐ ๐ฌ๐ก๐š๐ซ๐ž๐ฌ & ๐ฌ๐ž๐œ๐ฎ๐ซ๐ข๐ญ๐ข๐ž๐ฌ ๐ข๐ง ๐ˆ๐ง๐๐ข๐š.

๐‹๐จ๐ง๐  ๐ญ๐ž๐ซ๐ฆ ๐œ๐š๐ฉ๐ข๐ญ๐š๐ฅ ๐†๐š๐ข๐ง earned on such sale of ๐‘๐’๐”๐ฌ & ๐„๐’๐Ž๐๐ฌ are taxable at the ๐ซ๐š๐ญ๐ž ๐จ๐Ÿ 12.5% ๐ข๐ง ๐ˆ๐ง๐๐ข๐š without any indexation benefit. ๐’๐ก๐จ๐ซ๐ญ ๐ญ๐ž๐ซ๐ฆ ๐œ๐š๐ฉ๐ข๐ญ๐š๐ฅ ๐ ๐š๐ข๐ง shall be taxable at ๐ง๐จ๐ซ๐ฆ๐š๐ฅ ๐ซ๐š๐ญ๐ž๐ฌ.

Normally, ๐๐ข๐ฏ๐ข๐๐ž๐ง๐๐ฌ are also distributed to the ๐ž๐ฆ๐ฉ๐ฅ๐จ๐ฒ๐ž๐ž๐ฌ ๐›๐ฒ ๐Ÿ๐จ๐ซ๐ž๐ข๐ ๐ง ๐Œ๐๐‚โ€™๐ฌ ๐จ๐ง ๐ฒ๐ž๐š๐ซ๐ฅ๐ฒ ๐›๐š๐ฌ๐ข๐ฌ. It shall be ๐ญ๐š๐ฑ๐š๐›๐ฅ๐ž ๐š๐ญ ๐ง๐จ๐ซ๐ฆ๐š๐ฅ ๐ฌ๐ฅ๐š๐› ๐ซ๐š๐ญ๐ž๐ฌ ๐ข๐ง ๐ˆ๐ง๐๐ข๐š.

Under the following schedules, the above income has to be disclosed:

๐’๐œ๐ก๐ž๐๐ฎ๐ฅ๐ž ๐…๐’๐ˆ Since the ๐‚๐š๐ฉ๐ข๐ญ๐š๐ฅ ๐†๐š๐ข๐ง & ๐ƒ๐ข๐ฏ๐ข๐๐ž๐ง๐๐ฌ pertains to foreign shares, it shall be disclosed under this schedule FSI under the head Income from Capital Gain. Further, tax paid outside India shall also be disclosed alongwith tax payable in India if such income has been subject to tax in India.

Usually, on dividends withholding taxes are deducted by foreign MNCs.

Foreign Tax Credit shall be restricted to the lower of:
๐Ÿ“ foreign tax paid, or
๐Ÿ“Indian tax payable on such foreign income.

๐’๐œ๐ก๐ž๐๐ฎ๐ฅ๐ž ๐“๐‘ If any withholding Tax has been deducted by the employer & deposited in the Source country, then tax relief can be claimed in India as โ€˜Foreign Tax Creditโ€™.

๐‘ฐ๐’Ž๐’‘๐’๐’“๐’•๐’‚๐’๐’•: ๐‘ป๐’ ๐’„๐’๐’‚๐’Š๐’Ž ๐‘ญ๐’๐’“๐’†๐’Š๐’ˆ๐’ ๐‘ป๐’‚๐’™ ๐’„๐’“๐’†๐’…๐’Š๐’• ๐’Š๐’ ๐‘ฐ๐’๐’…๐’Š๐’‚, ๐’Š๐’• ๐’Š๐’” ๐’Ž๐’‚๐’๐’…๐’‚๐’•๐’๐’“๐’š ๐’•๐’ ๐’‡๐’Š๐’๐’† ๐‘ญ๐’๐’“๐’Ž 67 ๐’‘๐’“๐’Š๐’๐’“ ๐’•๐’ ๐’‡๐’Š๐’๐’Š๐’๐’ˆ ๐’๐’‡ ๐’š๐’๐’–๐’“ ๐‘ฐ๐’๐’„๐’๐’Ž๐’† ๐‘ป๐’‚๐’™ ๐’“๐’†๐’•๐’–๐’“๐’.

๐’๐œ๐ก๐ž๐๐ฎ๐ฅ๐ž ๐…๐€ It includes the details of foreign assets & income derived from sources outside India. ๐‘๐’๐”'๐ฌ ๐„๐’๐Ž๐๐ฌ ๐š๐ฅ๐ฅ๐จ๐ญ๐ญ๐ž๐ ๐›๐ฒ ๐ญ๐ก๐ž ๐Ÿ๐จ๐ซ๐ž๐ข๐ ๐ง ๐„๐ฆ๐ฉ๐ฅ๐จ๐ฒ๐ž๐ซ will need to be disclosed Column A3 which includes foreign equity & debt interest held be the taxpayer in foreign entities.

#Incometaxreturn #incometax #RSU #ESOP #MNC #foreigncompany #google #microsoft #GCC #tax #duedate #Capitalgain #dicvidend #taxcredit #taxrelief #shares #securities #CAVidhuDuggal

Let's Talk

Free Consultation

Related Post

Post Img

Income Tax Department Cracks Down on Bogus Claims!

Post Img

Foreign Company Operating Through a Liaison Office in India: PE Risk Assessment and Structuring Advice

Post Img

Which ITR form to choose by Individuals filing their returns?

Post Img

GCC in AI Sector-Why Foreign Companies Are Choosing India for Their Next Global Capability Center

Post Img

Abolition of Angel Tax provisions

Featured Post

Post Img

When many people think of Global Capability Centers (GCCs), they still associate them with back-office support functions.

Post Img

Taxation in UAE Free Zones: Myths vs. Facts

Post Img

TDS Deduction on Payment to Non Residents

Post Img

LIC receives GST bill of over Rs 290 crore from the Bihar tax department

Post Img

Standard Deduction applicable on US Individuals!

Contact us

Get In Touch With Us