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ESOP related query

ITR 1414 views 1 replies

Vikrant

88 Points Joined July 2018

Hello Friends,

I have received RSU stocks from my company listed in Ireland, some stocks were released this financial year. I can see entry in my Form 16 and company has deducted TDS on the same. I have below queries on the same:

Do I need to declare these stocks in Tax deferred on ESOP? (Assume no since this is not a startup organisation)
Do I need to declare the entire stock balance including the RSU and ESOP in Schedule FA A3? or is A3 only related to the interest I am bit confused here.
Also the broker (UBS) where the shares are hold have withdrawn taxes in host country (Ireland) while the shares were released. How do I mention this withhold tax and declare it in our ITR?

Any guidance would be helpful.

Replies (1)

Rama chary Rachakonda

Master in Accounts & high court Advocate

9610 Points Joined December 2011

Since the company is not a startup organization, you generally wouldn't treat these RSU stoks as tax-deferred under ESOP.

Schedule A3 typically pertains to income from savings and investments. You might need to report the RSU stocks in a manner consistent with other income reporting in your tax return, but specifics can depend on Irish tax rules for RSUs. Generally, you'd report income from RSUs when they are considered taxable income (often at vesting if taxed as income).

You should report the taxes withheld by UBS in Ireland in your tax return as per Irish tax guidelines. You might need to claim credit for taxes withheld in Ireland against your tax liability in your country of residence, depending on tax treaties between Ireland and Your country of residence.