Foreign shares & US RSUs — how they're taxed in India

RSUs — two stages (like ESOPs)

• At vesting: the market value of the vested shares is a salary perquisite, taxed at your slab (employer usually withholds).
• At sale: capital gain = sale price − value taxed at vesting. Foreign (unlisted-in-India) shares are long-term after 24 months (12.5%); otherwise short-term at slab.
• Convert amounts to INR using the SBI TT buying rate on the relevant dates.

Foreign tax withheld → claim a credit

US brokers often withhold tax (on dividends, or shares sold to cover tax). That foreign tax isn't lost — claim a Foreign Tax Credit against your Indian tax by filing Form 67 with a TRC, under the India-US DTAA. Report the gross income, then credit the foreign tax.

Two salaries (India + abroad)?

A resident is taxed on global income — both salaries are taxable in India, with a foreign tax credit for tax paid abroad. (An NRI is taxed only on India-source income.)

Mandatory — Schedule FA

A resident must disclose all foreign shares/RSUs/bank accounts in Schedule FA of the ITR, regardless of income. Non-disclosure is serious — it attracts penalties under the Black Money Act. Always report.