Kumar (Others) 26 July 2019
The ITRs this year seem to have an elaborate Schedule FA. For the cases where one receives Stock options from employer that are listed abroad, need some guidance on how to show that in Schedule FA.
Earlier I used to show the shares as a capital asset in Schedule FA, with the cost of acquisition set to match what is reported as Perquisite income in Form 16 issued by employer. Any gains made thereof is shown as capital gain. (The reasoning for setting the perquisite income as the COA is because that is not paid out, but is essentially what has gone into acquiring the share).
Now this year, the ITR has a specific column for shares. I have the following question:
1. The ITR asks for the cost of acqusition of these shares: Do I continue to use the perquisite value or should I be using the actual cost at which the company grants it to me Ex: if share price FMV is 30 and its offered to me at 10, with 20 shown as perq income, Should my cost of acquisition be 30 or 10
2. Furthur the ITR asks for sale consideration. In the case of gain, earlier in the capital gains column, it would ask about where this income is offered for taxation and we could point to the Schedule CG. Whereas in the equity shares column, it just asks for sale consideration. Now how do I fill this, since 30% of the shares where not sold by me but rather witheld? It won't make sense to put just the consideration for the 70% that I sold, since the entire 100% is what is offered as my total income and in perquisite.
Kumar (Others) 27 July 2019
Looks like a lot of questions surrounding schedule FA and stocks are floating in the forum. Will be good if someone can put up an article for this for the benefit of all salaried employees with stocks incentives.