LTCG on Foreign RSU Stock sale

The LTCG tax rate on the sale of foreign-listed RSUs is 20% after indexation. If the total LTCG is less than one lakh, no tax is payable. 

The RSUs are taxed as perquisite at vesting and as capital gains at sale. Details of the RSU sale should be reported in the capital gains section of the ITR-2, and foreign tax credits, if applicable, should be claimed using Form-67.

Thanks Sir for the update.
1. But the Exemption of LTCG from Shares not listed on Indian Stock Exchange :   below article says 'No Exemption' allowed (<1 lakh) . Kindly clarify

.   (refer the last table)

2. Also in new ITR-2 > CG > LTCG > Which section to be filled for Foreign RSU sale                (from B1 to B12).  Is it B3 / 112(1) to be used.

3. If the RSU sale happened after 23/July/24, is 12.5% without indexation to be followed .
Thanks.

RSU taxation in India has two stages.

Stage 1 (vesting): When RSUs vest, the FMV on vest date is perquisite income. Employer deducts TDS on this and it appears in Form 16 under Salaries. The FMV on vest date is your cost of acquisition for capital gains.

Stage 2 (sale): Sale price minus FMV on vest date is your capital gain. Holding period runs from vest date, not grant date.
- Less than 24 months from vest: STCG at slab rate.
- 24 months or more from vest: LTCG at 12.5% (no indexation).

Two compliance points:
1. Schedule FA in ITR-2 is mandatory for anyone holding shares in a foreign company, including unvested RSUs. This is a disclosure requirement, not a tax trigger.
2. Dividends received from a foreign company are taxable in India as income from other sources.

For the complete LTCG computation including the pre-July 2024 and post-July 2024 rate split and worked examples, this [capital gains tax guide for AY 2026-27](https://taxgarden.in/blog/capital-gains-tax-india-ltcg-stcg-ay-2026-27) covers both domestic and foreign stock treatment.