US Stocks, RSUs & ESPP Tax Calculator (India)

Twice. On vesting, the fair market value of the vested shares is a perquisite added to salary and taxed at your slab rate, with TDS deducted by the employer. On sale, the gain over that vesting FMV is a capital gain taxed separately.

Unlisted-in-India foreign shares need 24 months to qualify as long-term, taxed at 12.5% without indexation. Sold within 24 months, the gain is short-term and added to your income at slab rate. The clock starts on the vesting date, not the grant date.

Yes. A resident and ordinarily resident must report all foreign assets in Schedule FA of the ITR, even at a loss and even if already sold during the year. Non-disclosure attracts penalties under the Black Money Act, which are severe and independent of the tax involved.

The US withholds 25% on dividends under the treaty. You claim that as a Foreign Tax Credit against Indian tax on the same dividend by filing Form 67 before your ITR. Capital gains on US shares are taxable only in India for an Indian resident, so no US tax arises on the sale itself.

No. Under Rule 128 the foreign tax credit is computed separately for each head of income, not pooled. The 25% US withholding on dividends can only be credited against the Indian tax on that dividend income; if the Indian tax on it is lower, the excess is simply lost and is not refunded. Tax on your capital gain, which the US does not tax for a non-resident alien, must be paid in India in full. File Form 67 before the return to claim any credit at all.

For salary perquisite on vesting, the employer uses the SBI telegraphic transfer buying rate on the vesting date. For everything reported in your return, Rule 115 applies: use the SBI TTBR on the last day of the month immediately preceding the month in which the income accrued. For Schedule FA, the peak and closing balances are converted at the rate on the relevant date of the calendar year. Do not use Google's spot rate — assessments are reconciled against SBI rates.

Yes. Schedule FA of ITR-2 or ITR-3 must disclose every foreign asset you held at any time during the relevant calendar year, whether or not you sold anything and whether or not it produced income. Report the vested RSUs, any ESPP shares and the brokerage account itself. Non-disclosure attracts a Rs 10 lakh penalty per year under the Black Money Act, and it applies to resident and ordinarily resident taxpayers even when the total value is small.