Hello,
I work in an MNC and have received a few RSUs which have been vesting over the years. It never crossed my mind that these would need to be declared in Schedule FA since my understanding was that the tax implications start only when you sell these vested shares. I haven't sold a single one of these vested shares to date.
So, over the years, I have been filing ITR-4 (because of F&O trading) but have always left schedule FA as blank. Recently, my tax return for a previous year was selected for random scrutiny and the proceedings are under way.
Meanwhile, in our company, the FInance Head declared in a meeting that in his opinion, RSUs need to be declared in schedule FA. This was shocking news to me, which was compounded when I went on to read about the provisions and penalties of the Black Money Act.
What am I to do now? If I declare the vested shares from multiple previous years in this year's return, I guess I would be inviting trouble from the Assessing Officer for my scrutiny case (the returns for the year under scrutiny also do not mention these RSUs).
On the other hand, if I do not declare them, I worry what would happen in the future when I do declare it, either when I sell these shares or otherwise.
I have heard that there are mixed opinions on whether vested RSUs should be declared in Schedule FA, but do not know what the reasoning is. Does anyone have any experience with declaring previously undeclared RSUs?
Or even any suggestions at all? My CA is confused here as well.
CAclubindia
