Estimate Indian salary perquisite tax and capital gains on foreign-company RSUs, employee stock options and directly purchased overseas shares.
Enter your estimated rate including cess/surcharge.
Used as the acquisition date for this indicative capital-gains test.
Use a rate including cess/surcharge.
LTCG estimate adds 4% cess. Surcharge is capped at 15% for this selection.
Why RSUs and ESOPs can be taxed twice—but not on the same value
Equity compensation can create two distinct taxable events. First, the value received from the employer can be taxed as a salary perquisite. Second, a later sale can create capital gain or loss. The FMV already considered at the salary stage generally becomes the cost basis for the later capital-gains working.
ESOP: exercise-date FMV minus exercise price may be salary perquisite → later sale price minus exercise-date FMV cost basis may be capital gain or loss.
Current foreign-share capital-gains treatment
For transfers on or after 23 July 2024, foreign-company shares that are not listed on a recognised stock exchange in India are generally tested using a 24-month holding period. More than 24 months is treated as long-term; 24 months or less is short-term.
| Classification | Indicative Indian treatment used |
|---|---|
| Long-term foreign shares | 12.5% base tax without indexation, plus selected surcharge and 4% cess |
| Short-term foreign shares | Taxed at the user-entered effective slab rate |
| Capital loss | No immediate tax estimated; set-off and carry-forward rules require ITR review |
Currency conversion matters
The same USD gain can produce a different INR capital gain because the rupee value can change between acquisition and sale. Enter defensible INR conversion rates for the relevant tax dates. Employer payroll values, broker statements and the prescribed telegraphic-transfer buying-rate rules should be reconciled before filing.
Important limits of this estimate
- It is designed for transfers on or after 23 July 2024; earlier transfers can follow different holding-period, rate and indexation rules.
- It does not calculate foreign tax credit, Form 67 entitlement or tax payable in another country.
- It does not apply basic-exemption adjustment, marginal relief, loss set-off or startup ESOP tax-deferral provisions.
- It assumes the entered FMV and FX rates are the correct values for Indian tax reporting.
- Broker FIFO matching, multiple vest lots, wash sales and corporate actions should be calculated lot by lot.
Foreign asset reporting checklist
- Reconcile the salary perquisite with Form 16 and payslips.
- Maintain grant, vesting, exercise, allotment and sale statements.
- Preserve broker contract notes and foreign-tax documents.
- Report foreign assets and custodial/brokerage accounts in Schedule FA where applicable.
- Report foreign income in the relevant head and Schedule FSI; use Schedule TR and Form 67 where eligible foreign tax credit is claimed.
- Use an ITR form that contains the required capital-gains and foreign-asset schedules.
Frequently asked questions
Is an RSU taxed when granted?
A grant by itself generally does not create the salary value used by this tool. The relevant taxable stage is commonly vesting/allotment or transfer, based on the actual plan and payroll treatment.
What becomes the cost of RSU shares when sold?
The FMV already taken as the salary perquisite generally becomes the cost basis for the shares sold, subject to reconciliation with Form 16 and the applicable rules.
How is an ESOP exercise taxed?
The taxable perquisite is broadly the prescribed FMV on exercise minus the amount paid or recovered from the employee, multiplied by the shares exercised.
Are foreign shares long-term after 12 months?
Not merely because they are listed overseas. For the current post-23 July 2024 route used here, shares not listed on a recognised stock exchange in India generally use the 24-month test.
Does this tool calculate US tax or foreign tax credit?
No. It estimates Indian salary and capital-gains tax only. Foreign-country tax and Indian FTC eligibility require a separate treaty and Rule 128 review.
Need help reconciling RSUs, ESOPs or foreign shares?
TaxClear can review Form 16, broker statements, Schedule FA, FSI/TR, Form 67 and capital-gains lots before your return is filed.
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Disclaimer: This is an indicative calculator for general Indian tax understanding. Actual tax depends on residential status, plan documents, employer payroll, prescribed FMV, exchange rates, holding-period rules, losses, total income, surcharge, cess, treaty relief and foreign reporting. It is not a substitute for a transaction-level tax computation.
