Transferring USD from the proceeds of RSUs, ESOPs, and ESPPs
Are there any RBI restrictions or income tax implications when moving dollars from a US broker to Vested, especially if these dollars were received as dividends?
You can move your dividend funds from a US broker to Vested without any RBI restrictions. Regarding income tax, transferring these funds and investing them does not create a taxable event. Tax obligations only arise when you sell an investment or ...
Can we transfer shares/stocks to Vested without selling?
Yes, you can transfer shares/stocks to Vested without selling. Please check which stock transfer method is available with your broker. Here are the available methods: ACATS (Automated Customer Account Transfer Service) - Requires a Letter of ...
What are the charges associated with the funds transfer?
Normally, the broker imposes a one-time wire transfer fee when you transfer the funds. This fee typically ranges from $25 to $50 per wire.
Is this applicable after/before exercising the ESOPs?
This fund transfer method described above provides instructions on transferring funds once they become available after exercising the ESOPs.
What are the benefits of transferring from brokerage accounts where we hold ESOPs/RSUs?
Here are a few reasons why investing ESOP/RSU proceeds abroad is beneficial: Diversify your wealth: As the underlying value of the ESOP grows, more and more of your wealth might end up concentrated in the stock of just one company. In order to create ...
What are the tax implications of ESOP/RSU transfers?
The tax implications are simple: based on the amount of time you have held these shares, you will be paying long-term or short-term capital gains tax upon the sale of your ESOPs. More details on this can be found in our taxation article here. Once ...
Is it legal to transfer funds from my ESOP/RSU account?
In 2022, the Ministry of Finance published updated Overseas Investment regulations. Under these regulations, it was clarified that any shares acquired or received under Employee Benefits Schemes (includes ESOPs/RSUs) are considered as Overseas ...