RSUs in Your CTC? 5 Tax Traps to Avoid — Oct 2026

Many Indian tech and corporate employees now get RSUs as part of their salary. But most don't know when tax is due, how to declare it in ITR, or how to avoid double taxation. Here's what you need to know.

Here's what happened: RSUs (Restricted Stock Units) are now a core part of CTC for mid-to-senior corporate and tech employees, sometimes forming 30–60% of total pay.. Tax on RSUs is triggered at vesting — the fair market value on that date is treated as salary income, subject to TDS by the employer.. A second layer of capital gains tax applies when shares are sold, making RSUs a two-stage tax event that most employees are unprepared for..

What you should do: Check your latest payslip and Form 16 Part B to confirm your employer has included RSU vesting value as perquisite income and deducted correct TDS.. If you hold US-listed company RSUs, file Schedule FA (Foreign Assets) in your ITR every year — non-disclosure attracts penalties up to ₹10 lakh.. Calculate your capital gains liability before selling vested shares — hold beyond 12 months where possible to qualify for lower long-term capital gains tax rates..

If your employer under-deducts TDS on RSU vesting, pay the shortfall as advance tax by March 15 to avoid 1% per month interest under Section 234B.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.