I was working with Indian subsidiary of a US company listed in NASDAQ. I was allotted stock options by the company at the time of joining in Jul 2008. I quit the company in Dec 2012 and joined another company. I exercised and sold the stock options in Dec 2012. The amount was credit to my salary account after deductions such as taxes applicable in US and brokerage fees.
Now I received Form 16 and Form 12BA from my ex employer. Here in Form 12BA, the stock options are listed as perquisites and income tax is deducted on them as standard TDS.
My question is that whether there is double tax treaty between India and USA in this regards. Am I liable to pay income tax in India for these stock options? Or I am exempted from income tax in India because of this double tax treaty. If I am exempted then please explain the steps and documents needed to reclaim this amount from IT department while filing return.
Thanks in advance.