Hi,
I work in a Indian branch of US software Company. x no of RSUs were granted in October 2017 and it will be vested in next 4 years (i.e x/4 in October 2018).
I would like to know when this needs to be declared in ITR form during grant time or during vesting time. and also in which section it needs to be reported in ITR form.
Thanks in advance
Since RSU granted in Oct 2017, The tax implications when vesting the RSU i. e. when the employee exercises the option to buy the shares at the exercise price.As and when the options are exercised, the difference between the exercise price and the value of the security is treated as perquisite in the hand of the employee. The employer is required to deduct tax at source on the employee exercising the option, treating the same as perquisite. as
a perquisite (salary income).In A/y 2018-19, you don't need to show such RSU in your Income tax return.
Thanks Mr Sunil for your prompt reply.
But it is not shown in my Form 16 (A/Y 2018-19) as it is not yet vested and TDS can't be deducted.
Secondly, lets assume if I leave this company before October 2018 , then I will not receive any RSU. Shouldn't I show it when it is vested ( at that time only I will be having shares in my account )
CAclubindia
