International Equity Tax Calculator India — FY 2025-26
Calculate capital gains tax on US stocks, RSU perquisite and sale tax, and ESPP taxation with Foreign Tax Credit for Indian residents. Covers LTCG at 12.5%, STCG at slab rate, DTAA benefits, Form 67, TCS on LRS, and Schedule FA requirements. Updated for FY 2025-26.
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How to Use This Calculator
US Stock Tax tab
Enter the buy price and sell price per share in USD, the holding period in months, and the USD/INR exchange rate at both buy and sell dates. The calculator determines whether your gain is STCG or LTCG (24-month threshold for unlisted securities), computes the gain in INR including exchange rate impact, and shows the exact tax amount with 4% cess.
RSU Tax tab
Enter the FMV at vesting in USD, number of shares, exchange rates at vesting and sale, sale price, and months held after vesting. The calculator breaks down the two-stage taxation: (1) perquisite tax on vesting value at your slab rate, and (2) capital gains tax on the appreciation from vesting price to sale price. It shows the total tax liability across both stages.
ESPP + Foreign Tax Credit tab
Enter your ESPP purchase price, discount percentage, sale price, and the US tax withheld. The calculator shows the perquisite on the ESPP discount, capital gain on sale, total Indian tax liability, and the Foreign Tax Credit you can claim via Form 67 to avoid double taxation. The net payable after FTC is your actual out-of-pocket tax.
Share your result
All inputs are encoded in the URL. Click Share to send your tax calculation to your CA or bookmark it for ITR filing.
The Formula
Cost in INR = Buy Price (USD) × Exchange Rate at Buy
Sale in INR = Sell Price (USD) × Exchange Rate at Sell
Capital Gain = Sale in INR − Cost in INR
Classification:
Holding > 24 months → LTCG at 12.5% (Section 112)
Holding ≤ 24 months → STCG at slab rate
No &rupee;1.25L exemption (only for Indian listed equity under 112A)
RSU Taxation:
Perquisite = FMV at Vesting (USD) × Exchange Rate × Shares
Tax on Perquisite = Perquisite × Slab Rate × 1.04 (cess)
Capital Gain = (Sale Price − FMV at Vesting) × Exchange Rate × Shares
Holding period starts from vesting date
ESPP Taxation:
Perquisite = (FMV − Discounted Price) × Exchange Rate × Shares
Capital Gain = (Sale Price − Discounted Price) × Exchange Rate × Shares
Foreign Tax Credit:
FTC = min(US Tax Withheld, Indian Tax on Same Income)
Net Indian Tax = Indian Tax Liability − FTC
Worked Example
Arjun — software engineer with 50 RSUs from a US tech company
Arjun (30) works at a FAANG company in Bengaluru. He received 50 RSUs that vested when the stock was $180. He sold them 12 months later at $230. His annual income is ₹20 lakh.
Step 1: Perquisite at vesting
Step 2: Tax on perquisite (salary income)
Step 3: Capital gain on sale (12 months — STCG)
Step 4: Total tax liability
Key points: If Arjun had held for >24 months from vesting, the capital gain would be LTCG at 12.5% instead of 20% slab rate — saving ₹7,752. He must report these shares in Schedule FA of his ITR. If his US employer withheld tax on the RSU perquisite, he can claim Foreign Tax Credit by filing Form 67.
International Equity Tax Rates at a Glance (FY 2025-26)
Capital gains tax on foreign stocks for Indian residents
| Type | Holding Period | Tax Rate | Section |
|---|---|---|---|
| LTCG (foreign equity) | >24 months | 12.5% | Section 112 |
| STCG (foreign equity) | ≤24 months | Slab rate | Normal provisions |
| &rupee;1.25L exemption | NOT available for foreign stocks (only Indian listed equity under 112A) | ||
US dividend withholding rates (DTAA)
| Scenario | US Withholding | Notes |
|---|---|---|
| Without W-8BEN | 30% | Default US rate for non-residents |
| With W-8BEN (individual) | 25% | India-US DTAA Article 10(2)(b) |
| Company owning ≥10% stock | 15% | Rarely applies to retail investors |
Dividends are also taxable in India at slab rate. Claim Foreign Tax Credit via Form 67 to avoid double taxation.
TCS on foreign remittance (LRS) from April 2025
| Purpose | Up to &rupee;10L | Above &rupee;10L |
|---|---|---|
| Investment (stocks, mutual funds) | 0% | 20% |
| Education (loan-funded) | 0% | 0.5% |
| Medical treatment | 0% | 5% |
TCS is adjustable against income tax liability. Excess TCS can be claimed as refund when filing ITR.
Compliance checklist for foreign stock holders
- Schedule FA: Report all foreign stocks, RSUs, ESPP shares in Schedule FA (Foreign Assets) of ITR. Mandatory even if no income earned.
- Form 67: File before or along with ITR to claim Foreign Tax Credit on US tax withheld. Missing deadline forfeits FTC.
- W-8BEN: File with your US broker to get reduced dividend withholding (25% instead of 30%).
- ITR form: Use ITR-2 or ITR-3 (not ITR-1) if you have foreign income or assets.
- Advance tax: If capital gains tax exceeds ₹10,000, pay advance tax by due dates to avoid interest under Section 234B/234C.
- Black Money Act: Non-disclosure of foreign assets can attract penalties up to 300% of tax + prosecution.