Indian RSU Tax Calculator

RSUs (Restricted Stock Units) from your employer are taxed in India at two separate points — vesting and sale. This Indian RSU Tax Calculator works out both: the perquisite tax you owe the moment your shares vest, and the capital gains tax you owe when you sell them.

What Is Indian RSU Tax Calculator?

This tool calculates the tax you owe on RSUs granted by your employer — whether an Indian company or its foreign parent. It's built for salaried employees at Indian offices of multinational tech and finance firms, NRIs and returning professionals holding foreign-company RSUs, and CAs advising clients on equity compensation. Enter your vesting details and sale price (if sold), and it shows your perquisite tax and capital gains tax separately.

Indian RSU Tax Calculator Formula (as per Section 17(1)(d), Income-tax Act 2025)

RSU taxation happens in two stages. Under the Income-tax Act, 2025 (the successor to the old Section 17(2)(vi) of the 1961 Act, now in force for Tax Year 2026-27), the vesting-stage formula is:

Perquisite Value = Number of shares vested × (FMV per share on vesting date − Price paid per share)

Tax on Perquisite = Perquisite Value added to salary income, taxed at your slab rate + 4% cess

For shares from a foreign company, the FMV is converted to rupees using the SBI TTBR (Telegraphic Transfer Buying Rate) on the vesting date, as prescribed under Rule 26 of the Income-tax Rules. Your employer must deduct TDS on this perquisite value under the salary-TDS provisions, usually through a "sell-to-cover" of some vested shares.

At sale, the second tax event kicks in under Section 112:

Capital Gain = Number of shares sold × (Sale price per share − FMV on vesting date)

If held more than 24 months from vesting → Long-Term Capital Gain, taxed at 12.5% flat (no indexation)
If held 24 months or less from vesting → Short-Term Capital Gain, taxed at your income slab rate

Foreign-company shares are treated as unlisted securities for Indian tax purposes, so the 24-month threshold and Section 112 rate apply — not the 12-month, Section 112A rate used for shares listed on the BSE or NSE. If your RSUs are instead from an Indian-listed employer, use our LTCG Tax Calculator for the 12-month, Section 112A treatment.

How This Calculator Works

1. Enter the number of RSUs that vested, the FMV per share on the vesting date (in ₹), and the price you actually paid (usually ₹0).
2. Enter your other annual taxable income and pick your tax regime, so the calculator can find your applicable slab rate.
3. The calculator adds the perquisite value to your income and works out the extra tax this perquisite creates.
4. If you've already sold the shares, enter the sale price, number of shares sold, and holding period in months.
5. It classifies the gain as long-term or short-term based on the 24-month rule, and applies the correct tax rate.
6. Results display instantly, with perquisite tax and capital gains tax shown separately, right in your browser.

Step-by-Step Example Calculation

Rohit works at the India office of a US-listed company. 100 RSUs vest when the stock trades at $150. On the vesting date, the SBI TTBR is ₹86/USD.

• FMV per share in ₹ = 150 × 86 = ₹12,900
• Price paid per share = ₹0 (standard for RSUs)
• Perquisite value = 100 × (₹12,900 − ₹0) = ₹12,90,000

Rohit's other annual salary is ₹18,00,000, and he's on the New Regime. Tax on ₹18,00,000 alone works out to ₹1,66,400 (incl. 4% cess). Adding the ₹12,90,000 perquisite pushes total income to ₹30,90,000, and tax on that comes to ₹5,27,280. The extra tax due to the RSU perquisite is ₹3,60,880 — all of it withheld by his employer as TDS in the vesting month.

Eighteen months later, Rohit sells all 100 shares at $175 (₹87/USD that day) = ₹15,225 per share.

• Capital gain = 100 × (₹15,225 − ₹12,900) = ₹2,32,500
• Since he held the shares for only 18 months (24 or fewer), this is a Short-Term Capital Gain, taxed at his slab rate — not the flat LTCG rate. On top of his ₹30,90,000 salary income, this adds ₹72,540 in tax.

Had he waited past 24 months, the same ₹2,32,500 gain would qualify as LTCG under Section 112, taxed at a flat 12.5% with no indexation — just ₹30,225 (incl. cess). That single timing decision — selling at 18 months versus 25 months — is the difference between ₹72,540 and ₹30,225 in tax on the same gain.

Who Should Use Indian RSU Tax Calculator

• Employees working in India who receive RSUs from their employer or its foreign parent
• NRIs and returning professionals (H-1B, Green Card holders) with vested US-company stock — see our RNOR status guide if you've recently moved back
• Corporate employees at MNC India offices comparing take-home pay after equity vests
• CAs and tax professionals estimating client TDS obligations before Form 16 / Form 12BA is issued
• Anyone deciding whether to sell RSU shares now or wait past the 24-month LTCG threshold

Latest Rules You Should Know (2026)

The Income-tax Act, 2025 replaced the 1961 Act from Tax Year 2026-27 onward. The RSU perquisite provision moved from the old Section 17(2)(vi) to the new Section 17(1)(d) — the mechanics are unchanged, only the section number differs, so existing grant letters citing the old section remain valid in substance. Separately, since the Finance (No. 2) Act, 2024 (effective 23 July 2024), the Section 112 LTCG rate on unlisted and foreign shares is a flat 12.5% with no indexation, and the 24-month holding period for long-term classification is unchanged. Check our Old vs New Tax Regime Calculator to see which regime lowers your overall tax once the RSU perquisite is added to your salary.

Common Mistakes People Make

• Assuming RSU tax is only due at sale — perquisite tax is due at vesting, whether or not you sell any shares.
• Using the exercise price field for RSUs — RSUs almost always have ₹0 purchase price, unlike ESOPs.
• Forgetting that the FMV must be converted using the SBI TTBR on the exact vesting date, not the date TDS was deposited.
• Applying the 12-month/Section 112A listed-equity rule to foreign RSUs — they're unlisted in India, so the 24-month/Section 112 rule applies instead.
• Not accounting for TDS already deducted via sell-to-cover, leading to double-counting tax at ITR filing.
• Skipping Schedule FA disclosure for foreign shares — this follows the calendar year, not the Indian financial year, and is a separate requirement from the tax computation itself.
• Ignoring surcharge on very large perquisite values — this calculator estimates slab tax and cess only; income above ₹50 lakh also attracts surcharge, which a CA should add separately.

FAQs

Is RSU taxed twice in India? 

No — but there are two separate tax events. The FMV at vesting is taxed once as salary (perquisite). Only the gain above that FMV, when you later sell, is taxed again as capital gains. The FMV itself is never taxed twice.

Do I pay tax on RSUs if I don't sell them?

Yes. Perquisite tax is triggered by vesting, not by selling. Your employer deducts TDS on the FMV at vesting regardless of whether you hold or sell the shares afterward.

What exchange rate do I use for foreign RSU FMV?

Use the SBI TTBR (Telegraphic Transfer Buying Rate) on the exact vesting date, as prescribed under Rule 26 of the Income-tax Rules.

Are foreign RSUs treated as listed or unlisted shares in India? 

Unlisted, even if the stock trades on a foreign exchange like NASDAQ or NYSE. This means the 24-month holding period and flat 12.5% Section 112 LTCG rate apply, not the 12-month Section 112A rule for BSE/NSE-listed shares.

Does the ₹1.25 lakh LTCG exemption apply to RSU sale gains? 

No. That exemption is specific to Section 112A (listed equity). Section 112 gains on unlisted/foreign shares have no such exemption — the entire long-term gain is taxed at 12.5%.

How is TDS on RSU vesting usually deducted? 

Most employers use "sell-to-cover" — selling a portion of the newly vested shares to fund the TDS liability, then crediting the remaining shares to your demat or brokerage account.

Do I need to report foreign RSUs in Schedule FA?

Yes, if you're a Resident and Ordinarily Resident (ROR) holding foreign company shares. Schedule FA reporting follows the calendar year (January–December), separate from your April–March tax year.

Related Tools on Toolisky

• Salary Tax Calculator India
• LTCG Tax Calculator India — Shares & Funds
• Capital Gains Tax Calculator India
• Old vs New Tax Regime Calculator
• Foreign Dividend Tax Calculator India
• RNOR Status for NRIs Returning to India