How RSUs are Taxed in India
In India, RSUs are taxed twice. First, when they vest, they are considered part of your salary (a perquisite) and taxed according to your income tax slab. Your employer will usually sell some shares to cover this TDS (Sell-to-Cover).
Second, when you sell the vested shares, any profit made above the Fair Market Value (FMV) on the vesting date is considered Capital Gains. If the shares are listed abroad (e.g., US stocks), they are treated as unlisted shares in India.
Foreign Assets Declaration: Remember, owning US stocks via RSUs requires you to declare them under the FA (Foreign Assets) Schedule when filing your Income Tax Return (ITR-2 or ITR-3) in India.