RSU Tax Filing AY 2026-27: Perquisite, Schedule CG, and Schedule FA
Your Form 16 correctly shows the RSU perquisite and the TDS your employer deducted on vesting day. That is where your employer's job ends. Filing Schedule CG for the shares you sold — and disclosing the foreign equity you held, even briefly, in Schedule FA — is your job. Miss Schedule FA and you face a flat ₹10 lakh penalty under the Black Money Act; miss Schedule CG and you owe STCG tax plus 1.5% monthly interest under Section 234A.
Summary
| Item | Who handles it | Where in ITR-2 | Tax rate |
|---|---|---|---|
| Perquisite on RSU vest | Employer TDS | Schedule S / Form 16 Part B | Slab rate |
| TDS credit | Employer | Form 26AS Part A | — |
| Capital gains on sale | You | Schedule CG | STCG: slab; LTCG: 12.5% |
| Foreign asset disclosure | You | Schedule FA Table A2 | NIL (non-disclosure: ₹10L penalty) |
| Year-end FMV of held shares | You | Schedule FA Table A3 | — |
Step 1: Verify the Perquisite in Your Form 16
How FMV Is Computed for Foreign RSUs
For RSUs from a US-listed parent company, the perquisite value is the closing price on the vesting date converted at the SBI TTBR buying rate for that date — the method prescribed under the Income Tax Rules.
Example: 200 RSUs vest on 18 August 2025. Parent stock closes at $52. SBI TTBR = ₹83.60.
- FMV per share = $52 × ₹83.60 = ₹4,347
- Total perquisite = 200 × ₹4,347 = ₹8,69,400
This ₹8.69 lakh must appear in Form 16 Part B under "Value of perquisites u/s 17(2)". If the figure is lower, your employer likely used a corporate FX rate or the wrong date instead of SBI TTBR — and the shortfall becomes undisclosed income in your hands.
Surcharge Threshold Watch
RSU perquisite is salary income. If it tips your gross salary above ₹50 lakh (10% surcharge) or ₹1 crore (15% surcharge), the effective tax rate on the perquisite itself jumps. Many ₹15–20L base-salary MNC employees cross the ₹50L threshold only because of RSU vesting and discover mid-year advance-tax shortfalls under Sections 234B and 234C.
Step 2: Capital Gains — Only If You Sold Shares
Cost of Acquisition = FMV at Vest
Your cost basis for capital gains is not ₹0. It is the FMV on the vesting date — the same value your employer used for the perquisite. You avoid double taxation because you already paid slab-rate tax on that amount at vesting.
Which Rate Applies?
| Holding period from vest | Asset type | Tax rate (Finance Act 2024) |
|---|---|---|
| Less than 24 months | STCG — foreign shares | Slab rate (20% or 30% for ₹15L+ earners) |
| 24 months or more | LTCG — foreign shares | 12.5% without indexation |
The ₹1.25 lakh LTCG exemption under Section 112A applies only to Indian-listed equity where STT was paid. Foreign RSU gains do not qualify — even if the parent company trades on NYSE or NASDAQ.
Rupee Conversion for Schedule CG
Use SBI TTBR on the sale date for sale proceeds and SBI TTBR on the vesting date for cost of acquisition. Do not use the same rate for both — the rupee fluctuates between vesting and sale, and mixing dates produces an incorrect gain figure and a potential demand notice.
Step 3: Schedule FA — The Disclosure You Cannot Skip
Under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, every Resident and Ordinarily Resident (ROR) taxpayer must declare foreign assets in Schedule FA of ITR-2:
- Table A2: Foreign equity shares, including RSUs from a foreign parent company
- Table A3: Any other financial interest in an entity outside India
Who is ROR? If you were present in India for 182+ days in FY 2025-26 and were resident in at least 2 of the previous 10 years, you are ROR. This applies to almost every salaried professional employed in India.
The Same-Day Sell Misconception
Employees enrolled in same-day sell programmes — where shares vest and are immediately sold on the same day — widely believe they have no foreign asset to declare. The law is explicit: Schedule FA requires disclosure of any asset held at any point during the financial year, including the minutes between vesting and same-day sale. Immediate sale eliminates capital gains exposure (cost ≈ sale price), but it does not remove the Schedule FA obligation.
Penalty for Non-Disclosure
Section 42 of the Black Money Act: ₹10 lakh per year for each undeclared foreign asset. This penalty is flat — not proportional to the value of the asset. A ₹3 lakh RSU holding and a ₹3 crore RSU holding carry identical legal exposure if neither is declared in Schedule FA.
Real Example: Arnav, ₹25L CTC, Hyderabad, MNC Software (FY 2025-26)
| Item | Details |
|---|---|
| RSUs vested | 150 shares on 1 Sept 2025 at $60/share, SBI TTBR ₹84 |
| Perquisite income | 150 × $60 × ₹84 = ₹7,56,000 (verify against Form 16 Part B) |
| TDS deducted by employer | ₹2,26,800 at 30% slab |
| Shares sold | 80 shares on 15 Dec 2025 at $65, TTBR ₹84.60 |
| Sale proceeds | 80 × $65 × ₹84.60 = ₹4,39,920 |
| Cost of acquisition | 80 × $60 × ₹84 = ₹4,03,200 |
| STCG (held < 24 months) | ₹36,720 at 30% slab = ₹11,016 extra tax |
| 70 shares still held | FMV 31 Mar 2026: $63 × ₹84.80 = ₹5,329 each → ₹3,73,030 total |
| Schedule FA Table A2 | Vest event (150 shares at ₹7,56,000 cost) + year-end holding (70 shares at ₹3,73,030) |
Arnav's ITR-2 action plan:
- Confirm Form 16 Part B shows ₹7,56,000 perquisite — reconcile against vesting statement from Fidelity or Schwab.
- Pay ₹11,016 via self-assessment tax before 31 July 2026 (Schedule CG, Part E — STCG on other assets).
- Fill Schedule FA Table A2 for the vest event and the year-end holding of 70 shares.
- Skipping Schedule FA saves 10 minutes and risks ₹10 lakh.
What to Do This Week
- Download your equity plan statement from Fidelity, E*Trade, or Morgan Stanley Shareworks — you need vesting dates, quantities, vest-day USD prices, and all sale transactions for FY 2025-26.
- Pull SBI TTBR historical rates for each vesting date, each sale date, and 31 March 2026 at sbifxrates.com.
- Reconcile Form 16 Part B — the perquisite figure must equal shares vested × vest-day closing price × SBI TTBR. A gap above ₹5,000 warrants a correction request to payroll before filing.
- In ITR-2: complete Schedule CG Part E (if you sold shares) and Schedule FA Table A2 (always, if you are ROR with any RSU vesting during the year).
Get the Numbers Right Before 31 July 2026
RSU and ESOP income sits at the intersection of salary, capital gains, and foreign asset law — three different schedules in one ITR-2. Your employer handles the perquisite. Schedule CG and Schedule FA are yours to complete. The STCG tax on a small lot of shares is a manageable number; the ₹10 lakh Black Money Act penalty for a missing Schedule FA is not.
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