My client is a Indian resident. He acquired US listed stocks from a US resident through inheritance after their passing in the US. Those stocks were acquired through a foreign broker in which the original US resident were holding the stocks. These were ISO stocks acquired 10 years ago at a very low cost price which later were vested in the US itself few years ago. The company was recently listed. When the Indian resident acquired the stocks, a step up basis was applied to calculate cost price as FMV on the date of death. Now the confusion is since this is inheritance through a US estate, will the cost price for the Indian resident will be the stepped up basis or the original FMV at vesting few years ago.