Unlocking foreign RSUs: Here’s how they will be taxed in India

I used to previously work for a US-listed technology company and had received restricted stock units, or RSUs.

- Harshal Bhuta

I returned to India in 2022 and now plan to sell them. How are the foreign RSUs taxed in India?Since you have been residing in India since 2022, you are likely classified as a Resident and Ordinary Resident (ROR) for tax purposes. As an ROR, your global income - including any gains from the sale of foreign RSUs - is taxable in India. For Indian tax purposes, shares listed on foreign exchanges are treated as unlisted securities, as they are not listed on a recognized Indian stock exchange. Taxation on their sale depends on the holding period. Assuming you received the RSUs before 2022, your holding period exceeds 24 months, and the res