ESOP and ESPP tax in India during RNOR
Posted: Mon Nov 26, 2012 7:37 pm
Hi,
I R2I-ed in March 2012 and have a valid GC. I transferred from the US branch of my company to India. My RNOR ends in March 2014.
I have few Stock Options that vested when I was in the US. I am planning to sell them now (Nov 2012 - same day sale). Should I pay taxes to the Indian Government? Will US Government withhold taxes too? My auditor says that Indian Government will tax the gains and perquisite income and I can claim double taxation benefits from the US Government. Elsewhere in this forum I read that I will have to pay only US taxes and not Indian taxes during RNOR. This is confusing me.
How about ESPP sale? Will they be taxed in US or India? All the ESPP shares will cause long-term capital gains. Given my US income for 2012 is less, I'd like to sell some ESPP and make use of 0% LTCG tax.
Thanks
Sri
I R2I-ed in March 2012 and have a valid GC. I transferred from the US branch of my company to India. My RNOR ends in March 2014.
I have few Stock Options that vested when I was in the US. I am planning to sell them now (Nov 2012 - same day sale). Should I pay taxes to the Indian Government? Will US Government withhold taxes too? My auditor says that Indian Government will tax the gains and perquisite income and I can claim double taxation benefits from the US Government. Elsewhere in this forum I read that I will have to pay only US taxes and not Indian taxes during RNOR. This is confusing me.
How about ESPP sale? Will they be taxed in US or India? All the ESPP shares will cause long-term capital gains. Given my US income for 2012 is less, I'd like to sell some ESPP and make use of 0% LTCG tax.
Thanks
Sri