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May 6, 2022
Question

RSU Taxation Puzzle

  • May 6, 2022
  • 1 reply
  • 0 views

Hello experts, 

 

I have RSUs that are vesting after 3 years in May 2022. During the 3 years, I was on USA payroll for 30 months and Indian payroll for 6 months. I am told that I have pay taxes in India when shares vest, even though I am in USA when the shares vest. I cant figure this out. Here are some more details. Please advise why I have to pay taxes for a temporary stay in India. 

 

2006 to 2020 - USA resident alien 

Jan 2020 to June 2021 - Indian employee in India 

July 2021 - current - USA resident alien

1 reply

Employee
May 6, 2022

With regard to U.S. taxes, as a resident alien you must report all income from sources within and without the U.S.  See page 10, Resident Aliens, in this IRS reference:

https://www.irs.gov/pub/irs-pdf/p519.pdf

 

The tax laws of India are beyond the scope of this forum.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
ASA13Author
May 6, 2022

Thank you for the reply. What forum would be the best to post this ?

Employee
May 6, 2022

If you're looking for help with the tax laws of India, sorry, we can't help you.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.