RSU – calculating short term capital gains

POSTED BY ON July 30, 2013 4:31 pm COMMENTS (2)

Following is my question

RSU received (after adjusting for tax) on 10-Dec-2013 and 10-Mar-2013 are 20 & 20. If on 10-Dec-2013 share prices was 30USD and on 10-Mar-2013 it was 32 and if I sell at 35 today — can we use Cost of Index to arrive at todays purchase price and then calculate the short term tax
Purchase price for 10-Dec-2013 shares = 20 Shares * 30 USD * 939/852 (cost of index) = 661 USD
Purchase price for 10-Mar-2013 shares = 20 Shares * 32 USD * 939/852 (cost of index) = 705 USD

Total Sale value = 40 * 35 = 1400 USD
So net Gain/loss = 1400 – 661 -705 = 34 USD (assuming no cost for transfer)

So do I pay 30.09% of 34 USD * today’s USD to INR currency conversion

Please clarify whether the above method is correct.

Thanks and Regards
Sarang

2 replies on this article “RSU – calculating short term capital gains”

1. Sarangarajan Tirucherai says:

Dear Manish,

Probably i did not ask the question correctly. I had said that RSU received is post tax — meaning if they provide me 28.5 RSU, they sell 8.5 on the day of vesting and provide me with only 20 Shares.

So on
10-Dec-2013 — 28.5 RSU Vested, 8.5 sold and 20 shares provided to me — so i have already paid the necessary tax on 10-Dec-2012

Same way I would have paid tax for final shares provided to me (20) on 10-Mar-2013

Anycase it was clarified that for short term we cannot use Cost of Index

2. As far as I understand, you never pay for RSU , you get it for FREE . So your cost price is ZERO personally. so what ever income you generate is all PROFIT and you need to pay tax on it .

Now if its listed in India, then LTCG comes into picture, else you need to pay it as if its not listed in India

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