₹21,300 left every month
TaxSavvy for rsu tax
RSUs or US shares? Schedule FA is not optional.
We tax vest and sale correctly and fill Schedule FA with you.
If you wait: Foreign assets over ₹20 lakh left out of Schedule FA: ₹10 lakh penalty (Black Money Act 2015, Sec 43)
What you send
Any one of these gets us started. Photos are fine.
- Salary slip
- Form 16
- Company policy
- Investment statement
Send them on WhatsApp or upload after you start. Documents are encrypted and seen only by your CA.
How we get it done
Four steps, the same for every job. You see each one ticked.
Information
Broker annual statements, January to December. Vest and exercise history with FMV
Discussion
Are you resident and ordinarily resident this year, or RNOR after returning?. Which shares were sold, and how long after each vest or allotment?
Forms
Collect broker statements for the financial year (sales) and the calendar year (Schedule FA). Build lot-wise cost and dates
Deliverables
Lot-wise foreign gains working in rupees. Schedule FA working with peak and closing values
See what you get, free
Real formats, made with dummy data.
Sample Sample ₹36,280 less tax in the new regime
Sample Net worth ₹14.9 lakh
Questions, answered the CA way
Facts, Provisions and law, Analysis, Conclusion.
ESOP: Perquisite Tax at Exercise, Capital Gains Tax at Sale
- Facts
- ESOP (Employee Stock Option Plan) is taxed TWICE. First at exercise: the difference between fair market value and exercise price is taxable as salary perquisite, employer deducts TDS. Second at sale: the gain from sale of shares over FMV at exercise date is capital gains. Most ESOP holders know neither event and are stunned by a large TDS or tax demand.
- Provisions and law
- Sec 17(1)(d) (old 17(2)(vi)); Sec 392 (old 192); Sec 196 (old 111A); Sec 198 (old 112A); Finance Act 2020
- Analysis
- The two-event ESOP tax explained step by step: Example: ESOP exercise price = ₹100. Company listed, FMV on exercise date = ₹800. You exercise 1,000 options. Perquisite = (₹800 − ₹100) × 1,000 = ₹7,00,000. This is SALARY INCOME. TDS deducted by employer at 30% (if your slab is 30%) = ₹2,10,000. You've paid ₹2.1L in TDS from your salary. Cost of shares: ₹800 × 1,000 = ₹8,00,000 (FMV at exercise = cost). You then sell shares 14 months later at ₹1,200. Capital gains: (₹1,200 − ₹800) × 1,000 = ₹4,00,000. LTCG at 12.5% (above ₹1.25L) = (₹4L − ₹1.25L) × 12.5% = ₹34,375. Cost of acquisition for CG purposes: For ESOP: cost of acquisition = FMV on the date of exercise (not exercise price paid to employer). This is because the perquisite tax was paid on the FMV-exercise price difference. The remaining amount (FMV at exercise) is your actual cost for CG calculation.
- Conclusion
- Identify all ESOP grants: company, exercise price, vesting schedule, expiry date
- On exercise: compute perquisite = (FMV on exercise date − exercise price) × shares exercised
- Employer will deduct TDS on perquisite, confirm amount deducted appears in Form 130 (old Form 16) Part B
- Cost of acquisition for future CG = FMV on exercise date (not exercise price)
RSU vs ESOP vs SAR: what structure works for which employee
- Facts
- ESOP (Employee Stock Option): Right to buy shares at a fixed price. Employee must pay exercise price. Upside = FMV growth. Most common in India.
- Provisions and law
- Companies Act 2013 | SEBI SBEB Regs | IT Act Sec 16 to 18 (old 17)
- Analysis
- RSU (Restricted Stock Unit): Promise to deliver shares (or cash equivalent) on vesting. No exercise price, employee gets shares free on vesting. The entire FMV on vesting date = perquisite. Better for mid-senior hires who need less risk. Common in MNCs and large Indian tech companies. SAR (Stock Appreciation Right): Employee gets the cash value of price appreciation, no shares issued. Good for employees who don't want share ownership but want upside. No dilution for company. Taxed as salary on exercise.
Tax on inheritance: is there an estate or inheritance tax in India?
- Facts
- There is no estate duty or inheritance tax in India currently. The Estate Duty Act 1953 was repealed in 1985. Inheriting property, investments, or gold from a deceased person is not taxable in the hands of the heir, it is treated as a gift from a relative (exempt under Sec 92, Income-tax Act 2025 (old Sec 56(2)) proviso).
- Provisions and law
- Income Tax Act 1961, Sec 56(2) (now 92) | No estate duty currently
- Analysis
- However: if the inherited asset is later sold, capital gains tax applies, and the cost of acquisition is the cost to the original owner (for pre-April 2001 assets, use FMV on April 1, 2001). Inherited property that generates rent is taxable in the heir's hands from day of inheritance.
ESOP Tax Deferral (Sec 392, old 192(1C))
- Facts
- Employees of DPIIT-recognised + Sec 140, Income-tax Act 2025 (old Sec 80-IAC) certified startups get TDS deferred on ESOP perquisite until the earliest of: sale of shares, cessation of employment, or 5 years from allotment.
- Provisions and law
- Sec 392 (old 192(1C))
- Analysis
- Without deferral: employee owes tax at exercise date even if shares can't be sold. With deferral: tax deferred to liquidity event, when employee actually has cash to pay. Requires: DPIIT recognition + Sec 140 (old Sec 80-IAC) IMB certificate both active at time of grant.
RSUs or US shares? Schedule FA is not optional.
A Chartered Accountant handles it. Fixed price, told before you pay.
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