Here's an uncomfortable truth: most Chartered Accountants in India are not equipped to handle RSU taxation correctly.
This is not a criticism of the profession. RSU taxation — with its perquisite calculations, foreign currency conversion, Schedule FA requirements, DTAA claims, and Form 67 filing — is a niche within a niche. A CA who handles 200 salary-and-rental-income clients per year hasn't necessarily encountered these issues.
The problem is that most people don't realise this until their return is filed incorrectly and they receive a notice.
Why Most Cas Aren't Rsu-ready
The typical ITR for a salaried individual is fairly straightforward: Form 16, home loan interest certificate, HRA declaration, done. RSUs add an entirely different layer:
- Foreign asset disclosure (Schedule FA) — many CAs have never filled this - SBI TTBR conversion for perquisite and capital gains — a specific legal requirement - Lot-level capital gains reporting with different holding periods - W-8BEN and FTC for dividends (Form 67) - ITR form selection (ITR-1 is almost always wrong for RSU holders) - Reconciling Form 16 with brokerage gain/loss reports
Missing any of these creates problems — ranging from a notice to a penalty to an incorrect tax calculation.
Five Questions to Ask in Your First Conversation
Before engaging a CA for RSU-related filing, ask these questions directly:
1. "Have you filed ITR-2 or ITR-3 for clients with RSUs from a US company?" If they haven't, that's a red flag. You'll be their learning case.
2. "Do you handle Schedule FA for foreign brokerage accounts?" The correct answer: yes, and they should ask you what brokerage platform you use and whether it's in your name.
3. "How do you calculate the perquisite value — do you use the SBI TTBR rate?" The correct answer: yes. If they're using Google exchange rates or bank transfer rates, they don't know the rule.
4. "Have you filed Form 67 for a client claiming Foreign Tax Credit on US withholding?" This is relevant only if you receive dividends from US shares. A CA who handles international clients should have done this.
5. "Which ITR form do I need to file, and why?" Correct answer: ITR-2 (or ITR-3 if you have business income). If they say ITR-1 is fine because you're salaried, end the conversation.
Red Flags in Later Conversations
"Just show this as other income" — for RSU perquisite or capital gains separately. "We don't need to declare the Schwab account, it's a foreign account" — wrong. It must be in Schedule FA. Confusion about the difference between the financial year and the calendar year for Schedule FA. No mention of advance tax when you describe a large vest event. Uncertainty about whether a capital loss from RSU shares can be carried forward.
What a Good Engagement Looks Like
A CA who handles RSU filing well will:
Ask for your Form 16 and your brokerage gain/loss report simultaneously, not separately. Ask about the specific brokerage platform and how to export the correct reports. Reconcile the Form 16 perquisite figure against the brokerage FMV calculations. Identify the correct TTBR rate for each transaction. Fill Schedule FA with the correct calendar-year data and peak value. Remind you about advance tax obligations if your RSU income is significant. File Form 67 if you received dividends.
Platforms That Specialize in This
A few platforms have built specific workflows for foreign equity and RSU taxation: - Cleartax (for online filing with CA support): https://cleartax.in/ca-services - NRI tax specialists and firms with dedicated foreign asset practices - CA firms with fintech or US-India cross-border expertise
How Rovia Can Help
Rovia works with tax professionals who specifically understand RSU taxation. We won't refer you to a generalist — we'll connect you with someone who has handled exactly this situation before, and we'll prepare the documentation they need to file accurately.
If you're not sure whether your current CA is getting it right, bring us your last ITR. We'll review the key sections and flag any gaps.
