Regarding ESOPs double taxation

Hi, I am an Indian citizen residing in India. I work for a US based MNC whose shares are listed on NASDAQ in USA. I was granted ESOPs in July 2019 which were vested in July 2020 (I received less shares after few shares were sold by USA based broker 'Etrade' to recover tax in USA ). I have not sold these shares as of today. Perquisite amount with regards to these vested shares is added to my taxable income in FY20-21.

My question as are as follows:
1) Can tax on perquisite and tax deduction by broker Etrade in US be considered as double taxation?

2)While filing my returns for AY21-22, can I claim tax relief under the US-India double taxation avoidance treaty as broker 'Etrade' already deducted shares to recover tax? Should I fill schedule FSI & TR in ITR 2 for this?

3) If yes, can I do so even though I have not sold the shares yet and I am not incurring capital gains yet?

Thank you for your answers in advance.

Yes. The perquisite tax in India and tax deduction by foreign broker would amount to double taxation. You may claim relief by way of deduction under section 90 in respect of foreign TDS recovered subject to a maximum of tax paid on such perquisite in India. You have to fill Sch FSI, TR in ITR2 and file Form 67 separately on or before the due date of filing of return. Also, for the shares you have owned, you have to give the disclosure in Sch FA.

By the way, arising on TDS on perquisite in USA, I would like to hear from your that tax treatment on salary paid to you being a resident in India by your employer. i.e., whether your company deducted any tax in foreign?. If not, then pl ascertain from your company why this tax deduction on perquisite alone in foreign country?.

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v devanathan

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