Taxation of Awarded share and issued Share

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Comapny Awarded 30 Shares Under RSU but issued 19 Shared to employee because of Sale 11 share to pay Taxes in India of employee. So what was the treatment of those 11 share sold By company to pay Taxes in India.

Please guide 

Thank you 

Replies (4)
Quick Summary
This discussion clarifies the tax implications when a company awards Restricted Stock Units (RSUs) but sells some shares to cover employee taxes in India. The sale of shares to pay taxes is generally not considered a capital gain for the employee. Instead, the value of all awarded shares is treated as a perquisite and added to the employee's salary. Any remaining funds after tax payment are credited to the employee's demat account.

Whether the company issued comensation to the employee? if yes at what rate? any difference in sale rate & compensated rate?

No compensation is given by company any fund left after paying tax from sale of 11 share are credited in demat of employee 

When the shares are credited in demat acc. of employee, then it is not the sale. It is part & parcle of allotment.

Better read 'how ESOP are taxed' for its details.

There is no capital gain on 11 shares sold, as it is sold on the date of allotment itself to cover tax expenses

But 30 shares value will be added to employee salary as perquisite. 

For 19 shares,  need to declare the same under foreign asset schedule if it is foreign company.

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