Rupeemeter

RSU tax calculator

See the tax when your RSUs vest and, if you like, the capital gains tax when you sell them.

Updated for FY 2026-27 (tax year 2026-27) ·

₹25 lakh Salary after deductions. Sets the slab your perquisite falls into.

For foreign shares, convert to rupees at the rate your employer uses.

Tax regime

Tax on the perquisite at vest

on a perquisite of ₹2,00,000 · 31.2% effective

Step 1: at vest (taxed as salary)
FMV × shares₹2,00,000
Perquisite added to salary₹2,00,000
Extra tax (incl. cess)₹62,400

What are RSUs?

Restricted stock units are shares your employer promises you, released (vested) on a schedule. You pay nothing for them; the shares are taxed as salary when they vest.

How to use this calculator

  1. Enter your other taxable income for the year (salary after deductions).
  2. Enter the number of shares and the fair market value per share on the vest date.
  3. Pick your tax regime.
  4. Optionally turn on the sale section to estimate capital gains tax.

Tax on a ₹2 lakh perquisite at different incomes

New regime. The same perquisite costs more as your other income rises into higher slabs.

Other taxable incomeExtra tax on ₹2 lakh
₹10,00,000₹0
₹15,00,000₹36,400
₹25,00,000₹62,400
₹60,00,000₹68,640

How RSUs are taxed

At vest: perquisite = FMV on vest date × shares → taxed at your slab rate
On sale: gain = sale value − FMV on vest date → capital gains

Worked example

100 US-listed shares vest at ₹2,000 each while your other taxable income is ₹25 lakh (new regime): perquisite₹2,00,000, extra tax ₹62,400. Sold 30 months later at ₹3,000: gain₹1,00,000, long-term, 12.5% (s.197), tax ₹13,000.

Assumptions and limits

  • You are resident in India; foreign tax credit and tax treaties are not modelled.
  • Losses are shown but not set off against other gains.
  • Surcharge on capital gains is capped at 15%; marginal relief on it is not modelled.

Frequently asked questions

When are RSUs taxed in India?

Twice. When they vest, the fair market value of the shares is taxed as salary (a perquisite under section 17(1)(d)), and your employer deducts TDS. When you sell, the gain over that vest-date value is taxed as capital gains.

How are foreign RSUs (e.g. US-listed shares) taxed on sale?

They are not listed on an Indian exchange, so they become long-term only after 24 months. Short-term gains are taxed at your slab rate; long-term gains at 12.5% with no ₹1.25 lakh exemption (section 197).

What about RSUs of Indian listed companies?

Held more than 12 months: 12.5% on gains above ₹1.25 lakh a year (section 198). Held 12 months or less: 20% (section 196).

What is my cost when I sell?

The fair market value that was taxed at vest (section 73). You pay capital gains tax only on the rise after vesting.

What FMV should I use for US shares?

The rules value shares listed on Indian exchanges at the average of the day’s opening and closing price; for other shares they refer to a merchant banker’s valuation. Employers commonly use the foreign market price converted to rupees. Use the figure on your payslip or Form 16.