POSTED BY March 1, 2014 11:29 am COMMENTS (3)ON
Hi, I have RSU, ESOP & ESPP stocks and working for a US based MNC. I know there are lot of answers around how earning from these stocks will be taxed in India but still I am little confused so would like to check on these
RSU: I have almost every year RSU allotted to me by my company and they vest in 4 years (25% per year after the 1 st year). E-Trade with holds certain number of shares towards Tax when the RSU is released and vesting.
– Does this mean – I do not have to pay any tax when I sell RSU shares and get the money in my India Savings Account through E-Trade + Intermediary Bank (JP Morgan-Chase) ?
ESOP: I got some when I joined my company back in 2004. They have vested long time back but I was not able to sell them as the company stock price was going down but recently company stock price is going up that I will be able to sell my ESOP s now for a marginal profit.
I don’t think any shares from ESOP is with held as such towards Tax by E-Trade or the company. So when I sell them this year (this year being the last year I can sell as it has 10 year expiry) – will the profit be taxable in India? & will this is capital gain?
ESPP: I have been buying my company shares at a 10% discounted rate for the lsat few years. Money from my salary is used (10% of Salary) is used to buy these shares. Since it is bought from my taxed salary – will this still attract Tax when I sell them?