RSU of MNC company in Schedule Foreign Assets

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This query is : Resolved

Quick Summary

If you've sold Restricted Stock Units (RSUs) from a multinational company, you must declare them as foreign assets if you held them at any point during the calendar year. This applies even if you no longer possess them. For tax purposes, capital gains and losses from these RSUs should also be reported based on the calendar year. If you incorrectly filed using ITR-1 and incurred capital losses, you may need to file a revised return using ITR-2 to offset these losses against gains, ensuring compliance with financial year reporting.

Manjunath

Manjunath (Querist)

26 July 2023 I had RSU which I sold on October-2022. Now I am not holding any RSU. Should the RSUs I have sold be declared in foreign assets or not?

Thanks,
Manjunath

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

26 July 2023 Yes, it has to be declared.
For the taxpayers, in the case of foreign assets, the ITR form requires the disclosure of assets held at any time during the calendar year. For example, when filing ITR for assessment year 2023–24, one needs to declare all the foreign assets held from January 1, 2022, to December 31, 2022. This is done as most countries follow the calendar year for assessment, unlike India, where the financial year is April 1 to March 31.

Manjunath

Manjunath (Querist)

26 July 2023 Thanks for the response. What about capital loss or gain? Should that also be declared based on calendar year January 1, 2022, to December 31, 2022. The reason I am asking this is, I had sold RSU in February 2022 at short term capital loss and sold some in October 2022 with short term capital gain. But I had filed ITR for AY 2022-2023 with ITR-1 not knowing that ITR-2 should be used. I recently got to know that ITR-2 should be used if there are capital gains or loss. Is there any way I can make use of offsetting the loss?

Manjunath

Manjunath (Querist)

27 July 2023 Could you please answer this query too?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

27 July 2023 File revised return ITR 2 adjust the loss based on financial year.

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