Capital Gains Tax on RSUs on stocks listed in US

Hi. I was previously employed at EA Games India, Hyderabad where I received 50 RSUs of Electronic Arts Inc. NASDAQ: EA. I have an account in www.etrade.com where I manage the stocks. However, on received the stocks, 20% of it (10 shares) were deducted as taxes towards the US government. However, when I created the etrade account, I had to fill a W8BEN form for the Double Taxation Treaty that India and US have. Last year also, I got 50 shares (40 after taxes) which I sold immediately. But when I sold the stocks, I was again taxed in India with Short Term Capital Gains 20% rate. My question is, do I need to pay taxes both in US and India for these RSUs when India has a Double Taxation Avoidance Treaty with the US? If not, how can I claim tax benefit.
Asked 2 years ago in Income Tax from Gurgaon, Haryana
Firstly give information on your residential status whether or u s.  What is RSU  This will have to be examined in the light of Indo Us treaty for double taxation avoidance.  
Vijay N. Kale
CA, Hyderabad
248 Answers
4.9 on 5.0
  Talk to Vijay N. Kale
Under Indian law it is considered as Employee Stock Option and they are not taxed when they are vested but when thyey are sold you.
You can claim credit for tax deducted by U S authorities from the income tax payable in India and balance amount after deduction is your liability under Indian income tax Act
Vijay N. Kale
CA, Hyderabad
248 Answers
4.9 on 5.0
  Talk to Vijay N. Kale
If the query is already answered then if you again require I will give my view.

You can claim relief for the tax already paid in US. You need to pay the difference of tax rate in India and US.

RSU are offered to many employees, these are common and in most of the cases the amount is transferred to indian Bank Account. It will be taxed as short term capital gains 
Shyam Sunder Modani
CA, Hyderabad
1343 Answers
5.0 on 5.0
  Talk to Shyam Sunder Modani

Ask a Question

Get tax advice from top-rated chartered accountants. It's quick, easy, and anonymous!
Ask a question

Other Questions

Chartered Accountants

Abhishek Dugar
CA, Mumbai
1370 Answers
5.0 on 5.0
Rohit R Sharma
CA, Mumbai
1272 Answers
5.0 on 5.0
Shyam Sunder Modani
CA, Hyderabad
1343 Answers
5.0 on 5.0
Keerthiga Padmanabhan
CA, Greater Mumbai
188 Answers
5.0 on 5.0
B Vijaya Kumar
CA, Hyderabad
580 Answers
5.0 on 5.0
Vishrut Rajesh Shah
CA, Ahmedabad
559 Answers
5.0 on 5.0
Pradeep Bhat
CA, Bengaluru
297 Answers
5.0 on 5.0
Vidya Jain
CA, Kolkata
213 Answers
4.2 on 5.0
Lalit Bansal
CA, New Delhi
196 Answers
5.0 on 5.0
Vishakha Agarwal
CA, Bangalore
381 Answers
5.0 on 5.0