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Fatca declaration

Sarika M (Credit Manager) (40 Points)

02 May 2017

Applicability of FATCA: Scenario 1: Is this applicable to Indian Resident having US stocks? Scenario 2: Is this applicable to Indian Resident having US stocks who has already paid tax on unrealized gains on stocks as per Indian Tax laws?

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5 Replies

neeraj gupta (1138 Points)
Replied 02 May 2017

in my opinion yes. broker accounts are accounts

neeraj gupta (1138 Points)
Replied 02 May 2017

with financial interest. you have paid tax most probably till the exercise prive. After that gain/loss is part of capital gain/loss.

Sarika M (Credit Manager) (40 Points)
Replied 03 May 2017

HI,

Thanks for reply.

Thats not a brokerage account. Thats ESOP issued by company which has been vested in Jan 2017.

Is it require to file FATCA for such stocks which has been vested.

neeraj gupta (1138 Points)
Replied 03 May 2017

ESOP is ultimately a stock after it is vested with a few implications. an example: say u got the XYZ company stock option exercisable at $20. when it vested the price was $25. your company will deduct tax on this $5. You didn't sell the stock, now it is at $30. from $25 to $30 i.e. $5 is your capital gain. Most probably you have this stock in some broker like Etrade, etc. It is an account with financial interest. Pls let me know in case something mentioned doesn't apply to your case.