Investing
RSU (Restricted Stock Unit) — Meaning
Employer shares granted on a vesting schedule, taxed as salary on vesting and as capital gains on sale.
What is RSU (Restricted Stock Unit)?
Restricted Stock Units are a promise to give employees shares once vesting conditions are met. In India, the fair market value of shares on the vesting date is taxed as a salary perquisite (TDS is often paid by selling some shares), and the later sale gives capital gains over that value. Shares of a foreign employer are unlisted in India: long-term after 24 months and taxed at 12.5%. Residents must report foreign RSU holdings in Schedule FA.
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More Investing terms
F&O Turnover
For tax audit purposes, the total of absolute profits and losses on each futures and options trade.
Speculative Income
Income from transactions settled without delivery — mainly intraday equity trading.
VDA (Virtual Digital Asset)
Crypto, NFTs and similar assets, taxed at a flat 30% with no loss set-off and 1% TDS.
STT (Securities Transaction Tax)
A tax on buying and selling listed securities on stock exchanges, a condition for concessional capital gains rates.
