Tds on esop

Few Questions-

1) Whether Employee based in India

2) Whether employee receiving ESOP from company incorporated outside India i.e. Foreign Company

3) Whether employees are being employed by the same foreign company incorporated outside India

4) If answer to 3 is No, then whether employees are being employed by subsidiary or group company of such Foreign Company of which ESOP is being issued.

5)  What type of ESOP are you talking about? Do stocks issued as "RSU" (Restricted Stock Unit) or "ESOP" (Employee Stock Option Plan)

Thanks and Regards,

Manoj

Whether Employee based in India YES 2) Whether employee receiving ESOP from company incorporated outside India i.e. Foreign Company YES 3) Whether employees are being employed by the same foreign company incorporated outside India YES
its about employee stock option scheme 

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x employee hold shares in   us company .entire transaction is held outside india.he is recives it in india.the us company has remitted income after deducting tax and in idia they deduct tax at 30% and there is a remittance from parent company for the same .they treat it as income from other source and tax portion is shown under TDS.

wthr tds is applicble?what is the the actual tax treatment? should it be shown under CG or perquisite?

Assuming your query is only from tax payable in hands of employee perspective. Based on the assumption, following is reply :

Yes, TDS applicable. It is taxable in hands of employee as perquisite only for difference of market value of those vested stock less amount deducted from your salary towards ESOP purchase.

Further, whenever employee sold those ESOP, it will be taxable under the head as CG and all provisions of capital gain would apply accordingly.

Thanks and Regards,

Manoj

Dear Manoj sir,

I have below queries on Restricted Stock Units: (Employee is resident in India and he is employed in subisdiary company in India and he has been given Restricted Stock Units of Parent Company which is in USA)

1. When stocks are vested, certian number of stocks are withheld or sold as a tax adjustment in USA and employee got only balance stocks. Employer in India also deducted TDS as part of perquisite. As taxes seem to have suferred twice both in USA and India, whether there is any double taxation here ?What is the implication of this reduction in stock, whether this will amount to sale and whether this will be subject to capital gains tax in India ?

2. If there is a double tax, is there any practice to claim credit or exemption under DTAA in such cases?