RSU taxation for NYSE listed company

POSTED BY kkk ON November 22, 2013 11:22 pm COMMENTS (3)

Our company is listed in NYSE. We get RSUs at a particular price. Company takes care of taxation of allotment so we need to take care of only capital gains tax. Here is the situation

1. We get shares at a particular value, say $10

2. We sell at $11 (say STCG)

3. When we get the money back to Indian bank, around 2.5% is currency exchange charge.

How to compute gain in rupees (What is the basis for USD-INR exchange rate and what date) and can we deduct the currency exchange charge from gains.

Generally many of our colleagues don’t declare this in their declarations. What we gain is so little (some time even in hundreds ) that the charges to a CA doesn’t make sense.

3 replies on this article “RSU taxation for NYSE listed company”

  1. ashalanshu says:

    Dear KKK, if so much is the confusion, better to pay fee to a CA and take help from him/her.



  2. ashalanshu says:

    Dear KKK, please check the RSU taxation article written by dear Manish a long back in the main JI site.



    1. kkk says:

      That article doesn’t answer the question. Actually my question is more about computing cost of acquisition and sales proceeding calculation than RSU. It is applicable to shares bought and sold in foreign exchanges not just RSUs.
      There is conflicting information on the internet. Some say cost of acquisition and sales proceedings to be computed based on the exchange rate on the last working day of the preceding month of sale and some say both need to be computed based on the exchange rates on the respective dates. Some say exchange charges should not be deducted from profit and some say they can be deducted. So not sure on how to compute the profit. Once profit is computed, tax computation is straight forward though there is a confusion on applicability of benefit of indexation for foreign shares and properties.

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