Employee benefit scheme tax treatment
This query is : Resolved
22 December 2023
The assessee is working in a MNC.
She opted for employee benefit scheme wherein she received cash proceeds instead of shares after the expiry of vesting period.
Contributions were made both by employer as well as the employee in the shares of such MNC during vesting period.
Scheme also included Restricted Share Units(RSUs)
What shall be the tax treatment during different phases under different schemes?
Will there be Capital gain as well?
Or the cash proceeds received is after deducting all form of tax? I.e. no liability of capital gain?
She opted for employee benefit scheme wherein she received cash proceeds instead of shares after the expiry of vesting period.
Contributions were made both by employer as well as the employee in the shares of such MNC during vesting period.
Scheme also included Restricted Share Units(RSUs)
What shall be the tax treatment during different phases under different schemes?
Will there be Capital gain as well?
Or the cash proceeds received is after deducting all form of tax? I.e. no liability of capital gain?
23 December 2023
RSUs are taxed as income to you when they vest. If you sell your shares immediately, there is no capital gain tax, and you only pay ordinary income taxes. If instead, the shares are held beyond the vesting date, any gain (or loss) is taxed as a capital gain (or loss).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Fixe term employment
- Is any professional CA is here please reply
- Gift Received from nonblood relative
- Section 50-fixed asset-->building ceases to exist
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Experts need help
- Putting a heading on received mail
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
