Capital Gain calculation: There’s an additional method people use to calculate capital gains on foreign assets. In this approach, they utilize the exchange rate as the TT (Telegraphic Transfer) buy rate from the immediate preceding month in which the asset was sold or transferred. This conversion rate is applied to both the buying and selling prices. In our example: We sold the share on 20th October 2023. So, here you need to consider the TT buy rate of 30th September 2023, which was Rs. 82.4 per dollar. In 1st entry: Buy value will be: 4500*82.4 = 2,70,800/- Sell value will be: 5500*82.4 = 4,53,750/- Using this information, you can calculate your capital gain. Additionally, you can apply indexation benefit for long-term capital gains, as explained in my video. However, it’s important to note that this method results in a discrepancy between the cost of acquisition reported in Schedule CG (Capital Gains) and Schedule FA (Foreign Assets). In my video, I used the safer way and took the actual cost of acquisition. Ultimately, choose the method that aligns with your judgment. Links to Useful videos and sites: How to File Form 67: ua-cam.com/video/nd7pohSwoD8/v-deo.html ITR-2 with Foreign Assets: ua-cam.com/video/6wbp9s249z8/v-deo.html RSU and Its tax treatment: ua-cam.com/video/f0e4-j-T-JM/v-deo.html Telegraphic Transfer Buying (TT Buying) rate for the conversion of foreign currency to INR: forexrateindia.com/sbi-bank-forex-rates-30-12-2022/ CII for Indexation: incometaxindia.gov.in/Pages/utilities/Cost-Inflation-Index.aspx Article number for nature of income of respective country as per DTAA agreement: incometaxindia.gov.in/pages/international-taxation/dtaa.aspx
What would be the Initial Investment amount if shares are reveived bi-anually, once in May and once in Novemember (for Accenture it's 1st May and 1st Nov when shares get bought and credited to US broker account UBS One), and what would be the peak value, suppose I recived 3 in May, received 3 in Novemeber and sold 3 in November and recieved dicidend on 15th August, so will it be maximum number of shares held during the year * maximum market value of the share in the year + the dividend value?
Hi CA Namrata, CA Kirti here. First of all, I really want to congratulate you for uploading such informative videos with real examples. I really enjoyed watching and learning from you. In my 12 plus years of practice, I still am struggling with these issues. you are the only one whose video I watch at .75x instead of normal speed so that I don't miss any word you say. great work
Hey thank you Kirti, this is the best compliment & that’s really means a lot for me. And you can suggest me topics for video for which all are struggling.
@@Nama_CA WELL..just as a suggestion, I would may recommend a vid on allowance and perks taxable or exempt in new regime and may be taxability of esop in hands of employee....
This is a great video with loads of information and practical illustrations to fill up ITR. Thank you for coming up with this video. I noticed schedule SI which is relevant for ESPP DTAA rate is not covered in this video. The SI tab has a blank field for applicable DTAA taxes which probably needs to be manually updated with DTAA tax amount 1215 in your illustration.
this is really very clear video, if someone is patient then one can file ITR on his/her own following your video, superb job, if possible do share the excel so that we can maintain the data structurally and it will help us forever
Finally I got something very specific on taxation of RSU and ESPP in details at your channel. Thanks Dear 🙏. I hope it will help me in filing ITR this time.
Hi Namrata, I have small doubt on the RSU. For suppose company granted 100 RSU & Employee vested 100 RSU 30% Tax withholding by company & 70 RSU are credited in employee account Now in form 16 , that 70 RSU worth shows as perquisite & that perquisite is again taxed as per indian slab rates, For suppose employee tax slab@30% , then again 21 RSU worth as taxed in form 16. Finally Employee benefits 49 RSU worth only. is this is not a double taxation ?
I think this is wrong, as in case of ESPP the 15% discount is considered as ordinal salary and not as short/long term CG and is taxed as regular slab rate. Usually in case of etrade the espp stocks are released after tds cut at regular slab rate on the 15% gain due to discount. So when you sell or hold it , the price that needs to used is fair market price(on day of grant) in that case as the purchase price. Please let me know if you think otherwise ?
Hi Mam, It is really a great video and very helpfu, I have only one question, If i had got US stocks(RSU/ESPP) during working for "A" company 7 yrs back, and i have not disclosed FA by lack of knowledge, and if i still hold it, what is the method of disclosure now ?
Congratulations Ma'am 👍 Very nicely explained in detail with examples.. Looking forward to many such videos. I have a query wrt Salary received in US for 6 months and Salary in India for 6 months.. Assessee left India for the first time. Can I mail send a mail to you for your guidance?
Thank you very much for the detailed explanation with examples. Consider an scenario, where a person is investing in ESPP on every month of Rs.x for last 3 years. Is that 36 entries(one for each month) to be filled for each investment on ESPP ? There are dividends on the ESPP investment which is reinvested as stock purchase. Say two dividend for a year. Whether this has to be declared as Other income? Also, Since this dividend is reinvested, whether this has to be considered as investment correct mam?
Madam, is it possible to avail exemption on investment of capital gain arising on sale of ESPP of American companies. If yes, then under which section and amount of exemption. Please guide me.
For the current FY reporting my status is ROR, for previous years it was RNOR and NRI. For stocks acquired during NRI status which rate I have to apply? TTBR Or TTSR on purchase transactions and will it be the rate on the trade date?
Hi Maam, I have ESPP shares credited in Mar-24 and the tax has been deducted on top it in my March salary. But we need to declare the foreign assets only in calendar year. Could you please confirm on the same?
I have ESPP shares credited in at 15% discount. I got taxed as per my slab already. I have sold these shares at less profit(5% profit onll). Do I need to be taxed twice. Its so confusing. How to claim the tax deducted already.
Hello Madam, i fogot to fill Scheule FA in last 2 year. Can i fill all the details in AY 2024-25 now? Also i have earned 10 dollar dividend, can i pay tax on that this year. Also i sold 1 stock from AY 2022-23. How to adjust everything now. Please help.
Mam if my ESPP has provided me with shares on 28.03.2024 should I add it in FA for last financial year? Because in your excel you have mentioned "Till Calender year 31st Dec 2023"
Thanks for details. Can I ask for friendly guidance on my situation? here is my background, I was filling as RNOR/NRI till last year, starting APR 2023 i am RESIDENT. I have 401k account in USA with fidelity it has vested balance, not withdrawn from it ever/can’t withdraw till employment ends. How to report this under schedule FA? Should be under section A1 or D? It is a personal retirement account (just like EPF and NPS). should I skip reporting it ?
Really a very nice video explaining the process in detail but mam i have one question. I was using ESPP plan where i purchased company shares from 2014 till 2019 every month and company was also contributing 15 percent every month on the amount i was contributing. Till now, i have not sold those shares. As the shares have been purchased for more than 60 months, how to enter this in Schedule FA..waiting for your reply @Nama_CA
Should we report shares purchased through ESPP option way back in 2008? 3 shares were purchased in 2008 and held till now and dividend is being re-invested no monetary credit. Is it mandatory to report such information in schedule FA of ITR2?
Hello , i had watched full video of ESPP and also ITR 2 filling but still not able to understand how to add taxable income ( 17 (2)) under salary schedule as when I had mentioned same under income other than ESOP under 17 (2) at last it is asking me to submit PAN OF STARTUP AND DPIIT value which I am not able to understand . Could you help me
@@Nama_CA , thank you I had added in salary schedule it is giving error or asking PAN OF START UP AND DPIIT. currently I dnt have any income as I didn’t sell anything so dnt seeking any tax relief . just to add under salary schedule
Hi CA Namrata, I had a doubt regarding the dividend for the ESPP for ITR2. If the dividend is less than $2 and is not received but it is present as cash component with the financial company/bank which holds the shares as well. I have not sold the shares and also not received any money(dividend, etc) in my Indian Bank Account. So while filing ITR2, do I need to fill anything in the field 'Total gross amount paid/credited with respect to the holding during the period'. Please help understand Schedule FA for the above scenario. Thanks.
Hi Mam, I have ESPP from my company which is listed in the US. But I havent sold my shares yet. Also the shares were issues on market price. In this case I should not select Schedule FSI and only select FA in others correct?
Hi Ma’am Last year I have declared Foreign Asset which were not sold last year but now while filing return those FA are coming under FA and I have sold them this year , so do I need to edit that FA entry and fill the amount in redemption column ?
Capital Gain calculation: There’s an additional method people use to calculate capital gains on foreign assets. In this approach, they utilize the exchange rate as the TT (Telegraphic Transfer) buy rate from the immediate preceding month in which the asset was sold or transferred. This conversion rate is applied to both the buying and selling prices. In our example: We sold the share on 20th October 2023. So, here you need to consider the TT buy rate of 30th September 2023, which was Rs. 82.4 per dollar.
In 1st entry: Buy value will be: 4500*82.4 = 2,70,800/-
Sell value will be: 5500*82.4 = 4,53,750/-
Using this information, you can calculate your capital gain. Additionally, you can apply indexation benefit for long-term capital gains, as explained in my video. However, it’s important to note that this method results in a discrepancy between the cost of acquisition reported in Schedule CG (Capital Gains) and Schedule FA (Foreign Assets). In my video, I used the safer way and took the actual cost of acquisition. Ultimately, choose the method that aligns with your judgment.
Links to Useful videos and sites:
How to File Form 67: ua-cam.com/video/nd7pohSwoD8/v-deo.html
ITR-2 with Foreign Assets: ua-cam.com/video/6wbp9s249z8/v-deo.html
RSU and Its tax treatment: ua-cam.com/video/f0e4-j-T-JM/v-deo.html
Telegraphic Transfer Buying (TT Buying) rate for the conversion of foreign currency to INR: forexrateindia.com/sbi-bank-forex-rates-30-12-2022/
CII for Indexation: incometaxindia.gov.in/Pages/utilities/Cost-Inflation-Index.aspx
Article number for nature of income of respective country as per DTAA agreement: incometaxindia.gov.in/pages/international-taxation/dtaa.aspx
What would be the Initial Investment amount if shares are reveived bi-anually, once in May and once in Novemember (for Accenture it's 1st May and 1st Nov when shares get bought and credited to US broker account UBS One), and what would be the peak value, suppose I recived 3 in May, received 3 in Novemeber and sold 3 in November and recieved dicidend on 15th August, so will it be maximum number of shares held during the year * maximum market value of the share in the year + the dividend value?
Hi CA Namrata, CA Kirti here. First of all, I really want to congratulate you for uploading such informative videos with real examples. I really enjoyed watching and learning from you. In my 12 plus years of practice, I still am struggling with these issues. you are the only one whose video I watch at .75x instead of normal speed so that I don't miss any word you say. great work
Hey thank you Kirti, this is the best compliment & that’s really means a lot for me. And you can suggest me topics for video for which all are struggling.
@@Nama_CA WELL..just as a suggestion, I would may recommend a vid on allowance and perks taxable or exempt in new regime and may be taxability of esop in hands of employee....
@@Nama_CA 15ca/cb too
This is a great video with loads of information and practical illustrations to fill up ITR. Thank you for coming up with this video. I noticed schedule SI which is relevant for ESPP DTAA rate is not covered in this video. The SI tab has a blank field for applicable DTAA taxes which probably needs to be manually updated with DTAA tax amount 1215 in your illustration.
I don't comment on the videos. But, your video has really helped me with anxiety of RSU/ESPPs ITR filing. Thank you.😊
this is really very clear video, if someone is patient then one can file ITR on his/her own following your video, superb job, if possible do share the excel so that we can maintain the data structurally and it will help us forever
Finally I got something very specific on taxation of RSU and ESPP in details at your channel. Thanks Dear 🙏. I hope it will help me in filing ITR this time.
Thank you for your compliments… stay tuned with Nama_CA
Thank you, this is very detailed and covered every doubt.
Thank you mam for this video. Your way of explaining the topic is very good. Keep it up good work.
Thanks a lot
Very helpful! Thank you so much for this detailed information....!
Excellent video. Thanks a lot.
Nice to hear this…thanks
Thanks for the valuable info and it really helps. Please continue to use english subtitle.
Knowledgeable video Good
Thank you
Nice video…was looking for this
Glad you liked it
Hi Namrata,
I have small doubt on the RSU.
For suppose company granted 100 RSU & Employee vested 100 RSU
30% Tax withholding by company & 70 RSU are credited in employee account
Now in form 16 , that 70 RSU worth shows as perquisite & that perquisite is again taxed as per indian slab rates,
For suppose employee tax slab@30% , then again 21 RSU worth as taxed in form 16.
Finally Employee benefits 49 RSU worth only.
is this is not a double taxation ?
hello mam. u made this reporting easy. can you please share excel file for calculation
Here in this video you have not talked about how to offset perquisite that is already shown as income in our form 16 by the employer.
Great explanation. What is the best way to connect with you for income tax filing?
You can mail me on agrawalnamrtaandassociates@gmail.com.
I think this is wrong, as in case of ESPP the 15% discount is considered as ordinal salary and not as short/long term CG and is taxed as regular slab rate.
Usually in case of etrade the espp stocks are released after tds cut at regular slab rate on the 15% gain due to discount.
So when you sell or hold it , the price that needs to used is fair market price(on day of grant) in that case as the purchase price.
Please let me know if you think otherwise ?
yes, same question here. How to offset perquisite shown in form 16 by employer?
Hi Mam, It is really a great video and very helpfu, I have only one question, If i had got US stocks(RSU/ESPP) during working for "A" company 7 yrs back, and i have not disclosed FA by lack of knowledge, and if i still hold it, what is the method of disclosure now ?
Hi @Nama_CA
Thank you so much for nice informative video. By seeing this video, i subscribed to your channel.
Awesome, thank you!
Congratulations Ma'am 👍 Very nicely explained in detail with examples.. Looking forward to many such videos. I have a query wrt Salary received in US for 6 months and Salary in India for 6 months.. Assessee left India for the first time. Can I mail send a mail to you for your guidance?
Thanks for your compliments….
You can mail me on agrawalnamrtaandassociates@gmail.com
Thank you very much for the detailed explanation with examples. Consider an scenario, where a person is investing in ESPP on every month of Rs.x for last 3 years. Is that 36 entries(one for each month) to be filled for each investment on ESPP ? There are dividends on the ESPP investment which is reinvested as stock purchase. Say two dividend for a year. Whether this has to be declared as Other income? Also, Since this dividend is reinvested, whether this has to be considered as investment correct mam?
Even i have the same question..let me know if you got any answer
Mam in schedule fa whether to disclose sellable quantity or purchase quantity
Shares declared in FA in last ITR if partially sold in this AY 2024-25 HOW TO FILL THE FA SCHEDULE
Madam, is it possible to avail exemption on investment of capital gain arising on sale of ESPP of American companies. If yes, then under which section and amount of exemption. Please guide me.
Maam in my case they have both rsu and espp is from 2021 and sold in February 2024 for this how to calculate the purchase price espp
For the current FY reporting my status is ROR, for previous years it was RNOR and NRI. For stocks acquired during NRI status which rate I have to apply? TTBR Or TTSR on purchase transactions and will it be the rate on the trade date?
Hi Maam, I have ESPP shares credited in Mar-24 and the tax has been deducted on top it in my March salary. But we need to declare the foreign assets only in calendar year. Could you please confirm on the same?
Yes you are right.
@@Nama_CA Thank you Maam!
Hi Namrata
I have ESPP shares credited in at 15% discount. I got taxed as per my slab already. I have sold these shares at less profit(5% profit onll). Do I need to be taxed twice. Its so confusing. How to claim the tax deducted already.
Hello Madam, i fogot to fill Scheule FA in last 2 year. Can i fill all the details in AY 2024-25 now?
Also i have earned 10 dollar dividend, can i pay tax on that this year. Also i sold 1 stock from AY 2022-23. How to adjust everything now. Please help.
Mam if my ESPP has provided me with shares on 28.03.2024 should I add it in FA for last financial year? Because in your excel you have mentioned "Till Calender year 31st Dec 2023"
Mam broker account detail jo company open krwati h for managing share uski detail khi share krte h?????
@@jaimahakal8908 you can share that in A2 of scheduling FA and i will make new updated video covering all this type of points
Thanks for details. Can I ask for friendly guidance on my situation? here is my background, I was filling as RNOR/NRI till last year, starting APR 2023 i am RESIDENT.
I have 401k account in USA with fidelity it has vested balance, not withdrawn from it ever/can’t withdraw till employment ends. How to report this under schedule FA? Should be under section A1 or D? It is a personal retirement account (just like EPF and NPS). should I skip reporting it ?
Really a very nice video explaining the process in detail but mam i have one question. I was using ESPP plan where i purchased company shares from 2014 till 2019 every month and company was also contributing 15 percent every month on the amount i was contributing. Till now, i have not sold those shares. As the shares have been purchased for more than 60 months, how to enter this in Schedule FA..waiting for your reply @Nama_CA
Should we report shares purchased through ESPP option way back in 2008? 3 shares were purchased in 2008 and held till now and dividend is being re-invested no monetary credit. Is it mandatory to report such information in schedule FA of ITR2?
Yes
From where do we find Maximum value of stock in that financial year.
You can search on google
Hello , i had watched full video of ESPP and also ITR 2 filling but still not able to understand how to add taxable income ( 17 (2)) under salary schedule as when I had mentioned same under income other than ESOP under 17 (2) at last it is asking me to submit PAN OF STARTUP AND DPIIT value which I am not able to understand .
Could you help me
That you have to add in salary schedule like we add indian salary and also declare as foreign income in Schedule FSI and TR if you want tax relief.
@@Nama_CA , thank you I had added in salary schedule it is giving error or asking PAN OF START UP AND DPIIT. currently I dnt have any income as I didn’t sell anything so dnt seeking any tax relief . just to add under salary schedule
Hi CA Namrata, I had a doubt regarding the dividend for the ESPP for ITR2. If the dividend is less than $2 and is not received but it is present as cash component with the financial company/bank which holds the shares as well. I have not sold the shares and also not received any money(dividend, etc) in my Indian Bank Account. So while filing ITR2, do I need to fill anything in the field 'Total gross amount paid/credited with respect to the holding during the period'.
Please help understand Schedule FA for the above scenario. Thanks.
same query www.youtube.com/@Nama_CA
Hi Mam, I have ESPP from my company which is listed in the US. But I havent sold my shares yet. Also the shares were issues on market price. In this case I should not select Schedule FSI and only select FA in others correct?
Yes, correct but if you have received dividend on the shares, that you need to declare in FSI
Hi Ma’am
Last year I have declared Foreign Asset which were not sold last year but now while filing return those FA are coming under FA and I have sold them this year , so do I need to edit that FA entry and fill the amount in redemption column ?
Yes.
Mam, could we mentioned the essp in section D of schedule FA. Do i need to file a revised itr in case we mentioned that in section d and not in a3?
Yes you have to
All your videos are good. But you talk very fast. 😅
Itna fast quo bol raheho madam byheart ki thara ...samaj me aana chahiye naa sun ne waaloko