LTCG Section (B1-B12) for RSU Sale after Jul/24

LT gains from the sale of foreign RSUs (including US-listed stocks) are to be reported under the "B3" section of Schedule CG (B3: "From sale of assets other than those at B1 and B2 (where shares are not listed in India)"). This applies to sales after July 23, 2024. No, the relevant section for Indian-listed stocks is different.

Foreign listed shares/RSUs (e.g., US listed): Always reported under "B3". The form does not require you to specify the country of sale for B3, but if you hold US-listed RSUs, B3 is the right section regardless of country specifics.

LTCG treatment for foreign RSUs sold on/after 23rd July 2024, the LTCG tax rate is 12.5% (without indexation).

 Unlike Indian listed equity shares, LTCG on foreign shares/RSUs (B3) does not get the Rs 1.25 lakh exemption. That exemption applies only to shares covered under Section 112A (B1) – i.e., Indian listed equity shares.

Thanks Sir for the correct & detailed explaination.

Hope the FSI>Capital gain section need not be filled, as there is no tax in US for Sale and DTAA applicable.

You are welcome.                      

Kindly clarify

1.whether FSI > Capital Gain to be filled , as no tax deducted in USA for RSU sale and there by no DTAA. or should we show the CG in FSI and tax paid outside india as zero.

2. Schedule FA: (D) : I used to show  the RSU stocks(asset) held in FY in FA(D), should we update, if it has been sold fully in the FY.

Also the company & sale details to be filled in FA:A3 as well?