Have RSUs, ESPPs, or Foreign Stock Holdings? Here’s What You Must Know Before Filing Your Return

Thousands of employees working in India for multinational companies (like Uber, Microsoft, Google, Amazon, Salesforce, Oracle, etc.) receive part of their compensation in the form of RSUs, Stock Options, or ESPPs. While this is a great benefit, many are unaware of the complex tax disclosures that come with them.

𝐇𝐞𝐫𝐞 𝐚𝐫𝐞 𝐬𝐨𝐦𝐞 𝐤𝐞𝐲 𝐜𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐫𝐞𝐪𝐮𝐢𝐫𝐞𝐦𝐞𝐧𝐭𝐬 𝐟𝐨𝐫 𝐅𝐘 2024–25 (𝐀𝐘 2025–26)

1. 𝐒𝐜𝐡𝐞𝐝𝐮𝐥𝐞 𝐅𝐀 (𝐅𝐨𝐫𝐞𝐢𝐠𝐧 𝐀𝐬𝐬𝐞𝐭𝐬) If you held any foreign shares or brokerage accounts (even passively), you must report them under Schedule FA. This applies even if there’s no income or if you haven’t sold anything.

2. 𝐒𝐞𝐥𝐥 𝐭𝐨 𝐂𝐨𝐯𝐞𝐫 (𝐚𝐮𝐭𝐨𝐦𝐚𝐭𝐢𝐜 𝐬𝐚𝐥𝐞 𝐟𝐨𝐫 𝐭𝐚𝐱 𝐰𝐢𝐭𝐡𝐡𝐨𝐥𝐝𝐢𝐧𝐠) Even if you have not sold RSUs, company sell some shares to recover your taxes. Even if you didn’t manually sell anything, the tax implication applies.

3. 𝐅𝐨𝐫𝐦 67 (𝐅𝐨𝐫𝐞𝐢𝐠𝐧 𝐓𝐚𝐱 𝐂𝐫𝐞𝐝𝐢𝐭)

If tax was deducted abroad on dividends, Form 67 must be filed before your ITR to claim credit. Late filing = No credit = Double taxation

4. 𝐒𝐜𝐡𝐞𝐝𝐮𝐥𝐞 𝐀𝐋 (𝐀𝐬𝐬𝐞𝐭𝐬 & 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬)

New limit update: Now required only if your total income exceeds ₹1 crore (earlier it was ₹50 lakh). Must report all Indian and foreign assets held at the end of the financial year.

𝐂𝐨𝐦𝐦𝐨𝐧 𝐌𝐢𝐬𝐭𝐚𝐤𝐞𝐬 𝐭𝐨 𝐀𝐯𝐨𝐢𝐝:

1. Filing ITR-1 despite having foreign income or assets

2. Skipping Form 67, resulting in tax credit denial

3. Assuming FA/AL schedules are optional

4. Delaying reporting, which may lead to penalties under the Black Money Act

Tax compliance for global income is no longer optional — with international data-sharing treaties (FATCA, CRS), cross-border income is increasingly visible to Indian tax authorities. Connect with CA Pranay Bafna - Known as a best CA in India for RSU and ESPP taxation.

Click on the link to know more: https://wa.me/918380894711?text=Hi%2C%20I%20want%20to%20know%20more%20about%20your%20services