RSU / ESOP Tax Calculator (India)
Calculate the full tax on your RSUs or ESOPs — the perquisite taxed as salary at vest/exercise, plus capital gains at sale — for both Indian-listed and foreign/US shares.
Grant Details
Total Tax (Perquisite + Capital Gains)
₹62,400
Net proceeds after tax: ₹2,37,600
How It Works
RSUs and ESOPs are taxed twice in India. Stage 1 — at vesting (RSU) or exercise (ESOP), the benefit is a salary "perquisite" taxed at your income-tax slab: for RSUs the full fair market value (FMV) of the shares is taxable; for ESOPs it is the spread between FMV and your exercise price. Your employer usually deducts TDS on this. Stage 2 — when you later sell the shares, any gain over the FMV-at-vest (your cost basis) is a capital gain. For shares listed in India, the equity rules apply: 12.5% long-term (held ≥12 months, ₹1.25L exemption) or 20% short-term. For foreign or unlisted shares (e.g., US-listed RSUs from a foreign parent), they are treated as unlisted: the long-term threshold is 24 months and the LTCG rate is 12.5% without indexation, while short-term gains are taxed at your slab. Foreign shares also require Foreign Asset (Schedule FA) disclosure and may qualify for DTAA foreign tax credit.
Formula
Stage 1 (perquisite, salary slab): RSU = FMV × shares; ESOP = (FMV − exercise) × shares. Stage 2 (capital gains at sale): (sale − FMV-at-vest) × shares, taxed per listing/holding period. + 4% cess.
Frequently Asked Questions
Why are RSUs taxed twice?
First as a salary perquisite when they vest (their value is added to your income and taxed at your slab), then as a capital gain when you sell, on any increase in price after vesting. The two stages tax different things — the grant benefit and the investment gain.
What is the cost basis for RSU capital gains?
The FMV of the shares on the vesting date — the value that was already taxed as a perquisite. Your capital gain at sale is (sale price − FMV at vest) × number of shares.
How are US RSUs taxed for Indian residents?
US/foreign shares are treated as unlisted in India: long-term after 24 months at 12.5% (no indexation), short-term at your slab. You must also disclose them in Schedule FA of your ITR, and may claim a foreign tax credit under the India-US DTAA for US tax paid.
What is the difference between RSU and ESOP taxation?
For RSUs, the entire FMV at vesting is the perquisite (you paid nothing). For ESOPs, only the spread — FMV minus your exercise price — is the perquisite. Both then attract capital gains on sale above the FMV-at-vest.
Does my employer handle the tax?
Employers deduct TDS on the Stage-1 perquisite (often by selling some shares). But the Stage-2 capital gains tax on sale is your responsibility to compute and pay, and foreign shares need FA-schedule disclosure. Consult a CA.