TDS CALCULATION

You will have to update your Resident Status with the Income Tax Dept. This can be done by submitting an application to your Jurisdictional Assessing Officer (JAO), details of which you can find in your Income Tax portal. You will have to send them copy of your PAN and copy of your passport showing period of residence outside India so that your status can be updated in the PAN database.

Apply for an Aadhaar card and link it to PAN. You can take an appointment online, however biometrics will require physical presence in India at the Aadhaar Kendra. Once Aadhaar card is issued, kindly link it to PAN

Yes, losses can be offset against profit, there can be four possible scenarios, Click here for more details.

If Bonus shares are credited after January 31, 2018, then Cost of Acquisition will be considered as ZERO. If Bonus shares are held as on January 31, 2018 then Cost of Acquisition will be considered at Fair Market Value (FMV)

Under Employee Stock Ownership Plan (i.e. ESOP) employers offer their employees the stock of the company at a discounted rate. Exercising ESOPs is an option and not an obligation for the employees of a company. NRI employees are offered ESOPs by their company/holding company and they can exercise them using NRE or NRO funds under the Non PIS transaction category.

As NRIs can exercise ESOPs using both NRE or NRO funds, however ESOP transactions come under Non PIS category, therefore NRIs must ensure to provide the demat account number linked to NRE NON PINS or NRO NON PINS trading accounts depending on what source of funds (NRE/NRO) was used for exercising the ESOPs. NRIs should ensure the right demat account number is provided to company for ESOPs to be allotted into.

Upon sale of ESOPs by NRIs, an obligation for tax deduction i.e. TDS on capital gain arises. In order to comply with this, broker need to procure certain documents from NRIs to calculate the Cost of Acquisition (COA), know the source of funds and the holding period of ESOPs. In order to satisfy these requirements NRIs should ensure to provide the below documentary proofs -

1. ESOP allotment letter on Company Letterhead which contains details of allotment date and Exercise price
2· Details on Perquisite tax payment details if any in India or foreign country
3· If you have transferred the ESOPs from another DP in ICICI DP, then NRIs need to provide chain trail of demat transaction statement from the date of ESOPs allotted until the date of transfer of ESOPs into ICICI DP

The above proofs can be sent on email to nri@icicidirect.com

In case of Sale of ESOP shares by NRIs, if the perquisite tax is not paid in INDIA then Exercise price will be considered as cost of acquisition and accordingly tax will be deducted as per applicable rates.