RSU and ESOP tax calculator
Stock grants are taxed at two moments. When shares vest, their market value is a perquisite taxed as salary at your marginal rate, usually recovered by selling a slice of the shares. When you sell later, the gain over the vest price is a capital gain. This calculator prices both on your salary.
Your grant
Sets the slab your RSUs are taxed at
Shares × market price on the vest date
Listed on
Tax at vesting (perquisite, at your slab)
₹3,12,000
31.2% of the ₹10,00,000 vest is deducted as TDS, so roughly 31% of the shares are sold to cover it. The value appears in Form 16 as salary.
- Shares kept after tax
- ₹6,88,000
- Marginal rate
- 31.2%
- Salary tax without RSUs
- ₹4,30,872
Tax when you sell
| Sale value | ₹13,00,000 |
| Cost of acquisition (vest value, already taxed) | ₹10,00,000 |
| Capital gain, short term | ₹3,00,000 |
| Tax at 31.2% (slab rate, foreign short term) | ₹93,600 |
| Cash after both taxes | ₹8,94,400 |
Foreign shares are long term after 24 months at 12.5% with no exemption. Short term gains are added to salary and taxed at slab. Foreign holdings must be reported in Schedule FA every year. Cess of 4% applies on the capital gains tax too.
Questions
Your employer must deduct TDS on the perquisite value. Most brokers sell enough shares to cover that tax, so you receive fewer shares than vested. The value of the sold shares appears in your Form 16 as salary.