Tax planning
RSU and ESPP from a foreign parent: vesting perquisite, INR value and TDS
What this means, checked by a CA
When RSUs vest or you buy ESPP shares at a discount from a foreign parent, the gain is salary in India, valued in rupees on that date, and your Indian employer deducts tax. We value each vest, check the employer's figures, and set up the cost base, foreign asset disclosure and tax credit you will need later.
₹3,999
Each vesting or purchase; yearly reconciliation, + 18% GST
- Delivered in 3 working days after broker statements
- Due: At each vest or ESPP purchase (TDS in that month's payroll); year-end check before Form 130 and the ITR
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
Grant letter and plan rules
RSU or ESPP terms, discount
Broker vesting or purchase confirmations
Dates, shares, price per share
Shares withheld or sold to cover
Full vest is still perquisite
SBI TT buying rate for each date
Converts USD value to INR
Payslips showing perquisite and TDS
Check employer's value
Form 123 and Form 130
Must match the ITR
Any US tax withheld (1042-S)Optional
Foreign tax credit claim
Residential status for the year
Schedule FA only for residents
DiscussionWhat we discuss · 5 items
RSU, ESPP or both, and how many vest dates this year?
Each date valued separately
Did the broker sell shares to cover tax or did payroll deduct cash?
Avoids double TDS or a shortfall
Which price did the employer use: closing or average of open and close?
FMV rule must be applied consistently
Were you resident and ordinarily resident this year?
Decides Schedule FA and worldwide tax
Did you work abroad during the vesting period?
Part may be foreign-source; links to FTC
FormsForms we file · 5 items
List each vest or ESPP purchase with date, shares and USD price
Where: Broker statement (for example E*Trade, Schwab, Fidelity). Due: Within the month of vest
Value the perquisite in INR
RSU: shares vested x FMV per share x SBI TT buying rate; ESPP: shares bought x (FMV on purchase date minus purchase price) x rate
Where: Our working sheet. Due: Before that month's payroll
Agree perquisite and TDS with payroll; employer reports it in Form 123 and Form 130
Where: Employer payroll. Due: Monthly; Form 123 by 30 April, Form 130 by 15 June
Record INR cost base of shares retained (perquisite value per share)
Cost per share = FMV used for the perquisite, so the later gain is not taxed twice
Where: Our working sheet. Due: At vest
Prepare Schedule FA (calendar year), Schedule FSI and Form 67 or its 2026 successor if foreign tax was paid
Where: https://www.incometax.gov.in. Due: Before or with the ITR
DeliverablesWhat you get · 3 items
Vest-by-vest INR valuation sheet
When: 3 working days
TDS and Form 123 reconciliation
When: With the sheet
Cost base and Schedule FA working
When: With the sheet
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