How to report VMware RSUs (acquired by Broadcom) shares in Foreign Assets of the ITR when the cost of acquisition is shown as $0, post merger.

𝐄𝐱𝐩𝐥𝐚𝐧𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐒𝐡𝐚𝐫𝐞 𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 𝐟𝐨𝐫 𝐁𝐫𝐨𝐚𝐝𝐜𝐨𝐦 𝐑𝐒𝐔𝐬 𝐑𝐞𝐜𝐞𝐢𝐯𝐞𝐝 𝐯𝐢𝐚 𝐕𝐌𝐰𝐚𝐫𝐞

📌 Here’s a simplified breakdown:

As on 31st Dec 2024, let’s say you hold 100 shares of Broadcom, with an acquisition date of 01-Dec-2018 and acquisition price shown as $0—a typical scenario with RSUs.

To determine the cost of acquisition for disclosure in Schedule FA of your Income Tax Return (ITR) follow quick steps

👉 Assumptions:

VMware share price at vesting = $89 ( Get it from Benefit History)

Conversion ratio = 4 VMware shares → 1 Broadcom share

Effective cost per Broadcom share = $89 × 4 = $356

📅 On 14 July 2024, before Broadcom's stock split, you had 10 shares.

📅 On 15 July 2024, a 10:1 stock split was implemented.

🎯 Post-split, you now hold 100 Broadcom shares.

🔹 Total Cost of your 100 shares = $3,560

Even though the acquisition cost is $0, the cost you need to disclose is $3,560. Schedule FA → in A3

(You need to convert the dollars intothe proper exchange rate as notified by Income Tax) Connect to know more CA Pranay Bafna - 8888458882