India's #1 platform for ESOP & RSU tax filing, trusted for ₹10,000+ crore filings


Income Tax Filing for ESOPs & RSUs

Handle ESOPs, RSUs, and foreign stock options with ease
Auto-calculates capital gains and applies FTAA/DTAA correctly
Real-time one click integration with brokers

Full Clarity on Your Tax Liability —From Vesting to Filing

Select your broker
Upload broker statement
Verify scheduled FSI and other income data
Finish filing

Still confused? Get Expert Assistance

Get a dedicated expert to handle your taxes from start to finish

Our Plans starting from ₹4249₹4999

Loved by over 7.5M+ tax payers

₹1,050 Cr+


Refunds delivered last year

Kiran L.

Filed returns in 6 minutes!

Simple, accurate, and easy to understand - these are what describe ClearTax. Thanks to you guys, I filed my return in 6 minutes. The instructions on your portal are so clear that it makes submitting returns easy. Also, thank you for breaking down income tax for me.

VSK Chaitanya

Capital gains from mutual funds and stocks

The software auto-populated all my capital gains data from the P&L statements and also selected the correct ITR type. ClearTax, thank you for saving so much time and effort. Keep up the great work, team.

Guides and useful links to help you Efile taxes

Income tax filing for capital gains

ClearTax has integrations with 80+ brokers, enabling one-click fetching of capital gains data.

Know more →
Types of capital gains income

Learn about capital gains, its classification as short-term and long-term, and its taxation. Know about the various deductions available to save taxes on capital gains.

Know more →
Set off & carry forward capital losses

Understand how to treat capital losses and adjust them against gains to reduce taxable income.

Know more →
ESOP & RSU Taxation

ESOPs and RSUs have the same tax treatment. When either is sold, they are treated as capital gains and taxed at the applicable rates.

Know more →
Long-term Capital Gains

Gains from the transfer of long-term capital assets (held for more than either 12 or 24 months, as applicable) are known as long-term capital gains.

Know more →
Short-term Capital Gains

Gains from the transfer of short-term capital assets (held for less than either 12 or 24 months, as applicable) are known as short-term capital gains.

Know more →
LTCG & STCG Tax Rate on Shares

LTCG from the sale of equity shares are taxed at a flat rate of rate of 12.5% exceeding Rs. 1.25 lakh. STCG from the sale of shares is taxed at a flat rate of 20%

Know more →
LTCG calculator

Calculate your long-term capital gains based on the holding period of equity-oriented mutual funds and listed equity shares.

Know more →

Frequently Asked Questions

How are capital gains from ESOPs and RSUs taxed?

Capital gains taxation depends on the holding period and whether the shares are listed:​

  • Listed Shares: If held for more than 12 months, gains are considered long-term and taxed at 12.5% without indexation benefits and 1.25 lakhs exemption limit.
  • Unlisted Shares: If held for more than 24 months, gains are considered long-term and taxed at 12.5% without indexation benefits.​

Short-term capital gains (held for less than the above periods) are taxed at applicable slab rates for unlisted shares and at 20% for listed shares.

Do I need to disclose foreign ESOPs or RSUs in my tax return?

Yes, if you are a resident Indian holding ESOPs or RSUs in foreign companies, you must disclose these under Schedule FA (Foreign Assets) in your Income Tax Return (ITR). Non-disclosure can attract penalties under the Black Money Act.​

Can I claim tax relief for taxes paid in foreign countries?

Yes, India has Double Taxation Avoidance Agreements (DTAA) with several countries. If you've paid taxes abroad on your ESOPs or RSUs, you can claim relief in India by filing Form 67 along with your ITR, provided you report the income in the same financial year.​

What if I don't have liquidity to pay taxes at the time of exercise or vesting?

This is a common concern, especially with unlisted companies where there's no immediate market to sell shares. Some startups allow deferring the tax payment until you sell the shares or after a specified period. Employees at the start-up would not have to pay the tax on the perk in the year in which they exercised the ESOP. TDS on ESOPS would be delayed until the sooner of the following dates:

  • Five years from the date of the ESOP grant
  • When the employee sells the ESOP
  • Date of departure from the company

Are there penalties for late or incorrect tax filings related to ESOPs and RSUs?

Yes, failing to report income from ESOPs or RSUs, especially foreign holdings, can lead to penalties, interest on unpaid taxes, and scrutiny from tax authorities. It's crucial to maintain accurate records and file returns timely.​

How do I determine the Fair Market Value (FMV) of my shares?

For listed companies, FMV is typically the average of the opening and closing prices on the stock exchange on the exercise or vesting date. For unlisted companies, a valuation by a SEBI-registered merchant banker is required to determine the FMV.

What documentation should I maintain for ESOPs and RSUs?

Keep the following records:​

  • Grant letters detailing the number of options or units granted.​
  • Vesting schedules. Exercise or vesting confirmations.​
  • Sale transaction statements.​
  • Tax deduction certificates (like Form 16).​​
  • Valuation reports for unlisted shares.
These documents are essential for accurate tax filing and in case of any queries from tax authorities.​

Clear Logo
Follow us on
FacebookTwitterLinkedInGitHubInstagram
Have a query?
Support
Company
About us
Contact us
Careers
Media & Press
User reviews
Engineering blog
Clear Library
FinTech glossary
ClearTax Chronicles
GST Product Guides
Trust & Safety
Cleartax(Saudi Arabia)

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Office Address - Defmacro Software Private Limited, C 245A, Ground floor, Room No 1, Vikas Puri, West Delhi, New Delhi, Delhi 110018, India

Cleartax is a product by Defmacro Software Pvt. Ltd.

Privacy PolicyTerms of use

ISO

ISO 27001

Data Center

SSL

SSL Certified Site

128-bit encryption