Tax planning
Foreign shares, RSU and ESOP sale with Schedule FA
What this means, checked by a CA
Shares of a foreign company are not listed in India, so they are long term only after 24 months: long-term gains are taxed at 12.5% and short-term gains at your slab rate. You must also list every foreign account and share in Schedule FA every year, even if you sold nothing. We compute gains using your vest values as cost, convert to rupees, fill Schedule CG, FA and Form 44 (old Form 67), and check for missed earlier years.
₹3,999
a year, + 18% GST
- Delivered in 3 working days after broker annual statements and vest history
- Due: With the ITR (AY 2026-27: 31 July 2026 for ITR-2). Schedule FA covers holdings in calendar year 1 January to 31 December 2025 for AY 2026-27. Form 67 (now Form 44) by the end of the assessment year if the return is filed under Sec 139(1) or 139(4) (now 263(1) or 263(4)).
How we do it: IDFD
Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.
InformationWhat we need from you · 8 items
Broker annual statements, January to December
Schedule FA peak and closing values
Vest and exercise history with FMV
Cost and allotment dates
Sale confirmations (trade date, proceeds)
Capital gains per lot
Form 130 (old Form 16) showing RSU perquisite
Tie vest value to cost
Foreign tax withholding statementOptional
Form 44 (old Form 67) credit for tax paid abroad
SBI TT buying rates for dates used
Rupee conversion for FA
Residential status for the year
Schedule FA only for resident and ordinarily resident
Previous years' ITRsOptional
Check FA was filed earlier
DiscussionWhat we discuss · 6 items
Are you resident and ordinarily resident this year, or RNOR after returning?
RNOR and NRI skip Schedule FA
Which shares were sold, and how long after each vest or allotment?
24 months decides 12.5% or slab
Did the employer sell shares to cover tax at vest (sell-to-cover)?
Those sales are short-term with near-zero gain but must be reported
Did you hold any foreign shares, cash or accounts at any time in calendar year 2025, even unsold?
Schedule FA is required regardless of sale
Was Schedule FA filed in earlier years, and correctly?
Missed years carry ₹10 lakh penalty exposure
Was any tax withheld abroad on dividends or sales?
Form 44 (old Form 67) needed for credit
FormsForms we file · 7 items
Collect broker statements for the financial year (sales) and the calendar year (Schedule FA)
Where: Foreign broker portal (Fidelity, Schwab, E*Trade, Morgan Stanley and similar). Due: After 31 December and 31 March
Build lot-wise cost and dates
Cost per share = FMV at exercise or vest used in Form 130 (old Form 16); holding from allotment date; over 24 months = long term
Where: Internal working. Due: Before filing
Convert to rupees
Use the SBI TT buying rate as per the conversion rule adopted; record the source and date used
Where: Internal working. Due: Before filing
Compute tax and pay advance or self-assessment tax
Long-term gain x 12.5%; short-term gain at slab; plus surcharge and cess; less foreign tax credit where allowed
Where: https://www.incometax.gov.in e-Pay Tax. Due: Instalment of the quarter of sale; balance before filing
File Form 44 (old Form 67) with proof of foreign tax, if claiming credit
Where: https://www.incometax.gov.in > e-File > Income Tax Forms. Due: By the end of the assessment year (before or with the return is safer)
Fill ITR-2: Schedule CG (other long-term or short-term assets), Schedule FA (custodial account, foreign equity, vested unexercised awards as applicable), Schedule FSI and TR if credit, Schedule AL if income above ₹1 crore
Where: https://www.incometax.gov.in > e-File > Income Tax Returns. Due: AY 2026-27: 31 July 2026
For missed earlier years, review revised or updated return options and any notified disclosure scheme
Where: https://www.incometax.gov.in. Due: As early as possible
DeliverablesWhat you get · 3 items
Lot-wise foreign gains working in rupees
When: Before filing
Schedule FA working with peak and closing values
When: Before filing
Form 44 (old Form 67) acknowledgement and filed ITR
When: Same day
Questions people ask
Which period does Schedule FA cover for AY 2026-27?
The calendar year 1 January to 31 December 2025.
Do unvested RSUs go in Schedule FA?
Practitioner guidance: nothing is reported while unvested; vested but unexercised awards are shown at nil value; exercised shares at cost.
What rate on US shares held 30 months?
Long term, 12.5% without indexation for sales from 23 July 2024.
I am RNOR after returning from abroad. Do I fill Schedule FA?
No. Schedule FA is not required for non-residents or not ordinarily residents.
When is my RSU holding period counted from?
From the allotment date, and the cost is the FMV taxed as perquisite.
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