RSU & ESOP taxation in India — vesting vs selling

Restricted Stock Units taxed as salary-like perquisites typically when shares vest and fair market value is determined — employers usually withhold via sell-to-cover or supplemental TDS.

Selling vested shares later triggers capital gains — short-term vs long-term depends on holding period rules for listed securities; grandfathering matters for older grants.

Foreign parent plans may involve US withholding — foreign tax credits or treaty positions may apply; coordinate with a CA filing both jurisdictions.

Broker statements provide acquisition FMV and sale proceeds — reconcile with Form 16 perquisite lines before filing ITR capital gains schedules.

Illustrative calculators often flatten RSU gains into slab proxies — real STCG/LTCG arithmetic diverges; budget separately from salary optimisation.

Plan liquidity: vesting tax hits even if you hold shares; selling triggers brokerage STT and gains reporting — keep three buckets: vest tax, hold shares, sell proceeds.