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RSUs, stock options and foreign brokerage accounts for India-based startup employees
Equity compensation can involve grant, vesting, exercise, sale, payroll and foreign-account reporting. A US startup plan and a foreign brokerage account do not produce one universal tax result; country of work, residence and the plan documents matter.
Who it may apply to
India-based employees or contractors of US startups with RSUs, stock options, ESPP interests, shares held in a US brokerage or transactions while moving between countries.
Records to collect
Grant notices, plan documents, vesting and exercise reports, trade confirmations, brokerage statements, payroll slips, withholding records, foreign-account information and travel/residence history.
Filing and decision points
Map grant-to-sale events, compensation versus capital characterization, payroll reporting, country-of-work allocation, brokerage reporting and related foreign asset disclosures.
Common mistakes
Using a broker’s tax summary as the full answer, missing a vesting event, failing to retain grant-date records, or overlooking foreign account reporting when US tax residency applies.
Official sources
Reviewed by Gurleen Kaur, CPA (Washington State). Reviewed September 7, 2026.