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Tax implications on Sale of Shares received from Employer by RSU and ESPP

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Mallikarjuna Gowdar

3 Points Posted on 10 November 2020

Hello Experts,

I have gone several blogs to understand the Tax implications of Sales of shares allotted by employer through RSU's and ESPP. The employer is a USA company.

I would like to know as of today (10th Nov 2020), if i sell all my RSUs and ESPP's what will be my tax implication and will this be calculated and declared in ITR (which form and which section)?

Some blogs related 2011, mentioned that the sales of shares will be declared as LTCG/ STCG and some blogs say we have to go through DTA agreement with USA.

Appreciate if you could reply and clarify my query.

Regards,

Replies (1)

ayusmita

Tax consultant

5895 Points Posted on 11 November 2020

I got confused with one sentence is the person working in USA or the company??
as,per general when shares alloted in the form or says under ESOP s they are taxed in two ways
first when they alloted to the employee they are taxed as prequisite and when the employee sold it treated or taxed as capital gain
now hear as the share or say securities are allotted to you are not listed in india but usa it will be treated as long term capital asset if they are transferred after holding for more than 24months and the profit you gain will be long term capital gain