RSU vesting date was 1st Feb 2023 and assesse sold those RSU on vesting day itself.
what are tax implications
TDS has been deducted on value of 17(2)
- is there any requirement of disclosing those shares under capital gains and pay tax on same
( my thoughts - as they have sold shares on date of vesting itself, tax under capital gains not applicable )
Please guide me on the same
thank you
RSU taxation
Replies (2)
Quick Summary
There is no provision under the act which exempts a gain if the asset is sold on the same day on which it was bought.
its a taxable receipt in the hands of employee
its a taxable receipt in the hands of employee
RSUs vested and sold the same day:
• On vesting (1 February 2023), the FMV of the shares is a perquisite taxed as salary (Sec 17(2)(vi)), through Form 16 (the employer deducts TDS, often by selling some shares).
• Sale on the same day: capital gain = sale price minus FMV at vesting (cost under Sec 49(2AA)). Usually small (a price change within the day) or nil. Short-term (foreign shares, unlisted in India), taxed at slab rates.
• Report the sale in Schedule CG (ITR-2), and the shares in Schedule FA (held during the calendar year 2023, even briefly) with peak and closing values (closing nil).
• Foreign tax withheld (if any) on vesting: FTC via Form 67.
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