u/Brilliant-Plate-6631

On vesting of RSUs, the taxes are withheld in the form of shares, and in some cases, the taxation amount exceeds the total value of shares held, as there is no provision for holding fractional shares.

The excess amount held is usually remitted as "cash disbursement" in E-Trade.

I recently learned that, per FEMA policy, any amount held in USD must be transferred back to India within 90 days (unless reinvested in the US) - otherwise it attracts a heavy penalty.

Link to FEMA policy comment: https://www.reddit.com/r/IndiaInvestments/comments/mziejb/comment/gw29n1a/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button

Does the above also qualify, given that it was NOT part of dividends/sold RSUs?

Hello,

I opted for ESPP last year in November, and vesting will happen this year in May (next week). The tax will be deducted accordingly as per my slab.

Now, while filing the ITR for FY2025-26, the deductions have been shown on my salary slips, but the tax liability has been paid in the succeeding financial year.

• I am aware that Form-16 will show the above deductions in stocks/foreign holdings. Apart from that, do we need to submit any other statements or proof?
• I got to know about W8-BEN. But I cannot find any such, am assuming after vesting of stocks next week, it will get updated?
• Also in Schedule FA, do we report holdings equivalent to whatever was deducted from Nov'25-Mar'26?

If a similar query has been discussed in this sub or elsewhere, please direct me to it.

TIA