🧾 "𝘞𝘦 𝘩𝘢𝘷𝘦𝘯’𝘵 𝘴𝘰𝘭𝘥 𝘢𝘯𝘺𝘵𝘩𝘪𝘯𝘨 — 𝘥𝘰 𝘸𝘦 𝘴𝘵𝘪𝘭𝘭 𝘯𝘦𝘦𝘥 𝘵𝘰 𝘳𝘦𝘱𝘰𝘳𝘵 𝘪𝘵?"

🧾 "𝘞𝘦 𝘩𝘢𝘷𝘦𝘯’𝘵 𝘴𝘰𝘭𝘥 𝘢𝘯𝘺𝘵𝘩𝘪𝘯𝘨 — 𝘥𝘰 𝘸𝘦 𝘴𝘵𝘪𝘭𝘭 𝘯𝘦𝘦𝘥 𝘵𝘰 𝘳𝘦𝘱𝘰𝘳𝘵 𝘪𝘵?"

Yes. Especially if it’s RSUs or ESPPs.

This is where most salaried taxpayers go wrong.

You didn’t sell your shares, but if RSUs vested or ESPPs were allotted —

👉 You’ve already earned taxable income.

And it needs to be reported in your ITR in

1. Salary Schedule (under perquisites)

2. Capital Gain Schedule (For reporting Sale on vest)

3. In Foreign Asset Schedule

even if there’s no sale.

🔸 RSUs → Taxed as salary on vesting

🔸 ESPPs → Discount taxed as salary, gains taxed on sale

💡 Don’t forget to report these in the Foreign Assets (FA) section of your return — it’s key for accurate reporting.

📌 Misreporting or skipping it completely can lead to mismatch notices from the IT Department months later and penalty of Rs. 10 Lakh under Black Money Act.

Understanding stock compensation is no longer optional — it’s part of modern salary structures.