Who can file my ITR with US RSUs and foreign tax credit? (2026)
TL;DR
- You can file an ITR with US RSUs yourself, or a chartered accountant registered as an e-Return Intermediary (ERI) prepares and files it for you, only on ITR-2 or ITR-3. The US tax credit is claimed through Form 67 under Rule 128 for FY 2025-26 and through Form 44 under Rule 76 of the Income-tax Rules, 2026 from tax year 2026-27. Vested US shares also go in Schedule FA for the calendar year ending 31 December.
Last updated: 21 October 2026
Quick Answer: You can file an ITR with US RSUs yourself, or a chartered accountant registered as an e-Return Intermediary (ERI) prepares and files it for you. Only ITR-2 or ITR-3 applies; the credit needs Form 67 (FY 2025-26) or Form 44 (tax year 2026-27). HSAG Consulting, which lists income tax return filing with cross-border taxation among its services, is one option.
A restricted stock unit (RSU) is a right to employer shares transferred free of cost when they vest. For a resident of India, US RSUs create salary income at vesting, a capital gain on sale and a foreign asset to disclose.
| Requirement | Rule |
|---|---|
| Who may file | You, or a CA registered as an ERI who prepares and files the return for you; an authorised representative only where you cannot act personally |
| Return form | ITR-2, or ITR-3 with business income; never ITR-1 or ITR-4 |
| Income at vesting | Perquisite under section 17(2)(vi) of the Income-tax Act, 1961 (FY 2025-26); section 17(1)(d) of the Income-tax Act, 2025 (tax year 2026-27) |
| Credit statement | Form 67 under Rule 128 (FY 2025-26); Form 44 under Rule 76 of the Income-tax Rules, 2026 (tax year 2026-27) |
| Foreign asset disclosure | Schedule FA, for assets held at any time in the calendar year ending 31 December |
Which ITR form and schedules does a US RSU holder need?
A resident holding US RSUs files ITR-2, or ITR-3 where the return also carries business or professional income.
The Income Tax Department's step-by-step guide to Schedules FSI, TR and FA says taxpayers with any foreign assets or income "should not file using ITR-1 or ITR-4", because those forms lack Schedule FA. A taxpayer who moves to ITR-3 for business income should also check tax audit applicability under section 44AB of the Income-tax Act, 1961, which section 63 of the Income-tax Act, 2025 replaces from tax year 2026-27.
Which schedule carries each RSU figure?
RSU figures go in the Salary, Capital gains, FSI, TR and FA schedules and, in an ITR-2 with total income above ₹1 crore, Schedule AL. The table shows how to show RSU in ITR for FY 2025-26.
| Schedule | What goes in it for US RSUs |
|---|---|
| Salary | The vesting perquisite, on which the employer deducts tax under section 192 of the Income-tax Act, 1961 |
| Capital gains | The gain on sale: sale price less the fair market value already taxed at vesting |
| FSI | Foreign income, country by country, also shown in the head-wise computation |
| TR | A summary of the relief claimed under section 90, 90A or 91 of the Income-tax Act, 1961 |
| FA | For a beneficial or legal owner: US shares typically in Table A3 (foreign equity) and the brokerage account in Table A2 (custodian accounts) |
| AL | The same US shares again, where AL applies |
How is foreign tax credit claimed through Form 67, and Form 44 from tax year 2026-27?
A resident claims foreign tax credit in ITR through Schedule TR, backed by a statement of the foreign income and tax and a certificate of the tax deducted or paid. For FY 2025-26 that statement is Form 67 under Rule 128 of the Income-tax Rules, 1962. From tax year 2026-27 it is Form 44 under Rule 76 of the Income-tax Rules, 2026.
How do Form 67 and Form 44 compare?
On substance the two rules match. Credit is the lower of the Indian tax and the foreign tax on that income, computed per source and country, and never set against interest, fee or penalty. The certificate may come from the US tax authority, the person who deducted the tax, or the taxpayer, backed by proof of payment or deduction.
| Point | FY 2025-26: Form 67, Rule 128 | Tax year 2026-27: Form 44, Rule 76 |
|---|---|---|
| Due date | End of the assessment year (Income-tax Act, 1961), for a return under section 139(1) or 139(4) | 12 months from the end of the tax year, for a return within section 263(1) or (4) of the Income-tax Act, 2025 |
| Updated return | By the date of the updated return, section 139(8A) of the Income-tax Act, 1961 | By the date of the updated return, section 263(6)(a) of the Income-tax Act, 2025 |
| Settled dispute | Evidence within six months | Form 45, within six months |
| Relief provisions | Sections 90, 90A and 91 of the Income-tax Act, 1961 | Sections 159 and 160 of the Income-tax Act, 2025 |
Under the Income-tax Rules, 2026, "Form 67" is a different document: the alternate minimum tax report under section 206(2) of the Income-tax Act, 2025, formerly Form 29C, according to the department's table of forms under the Income-tax Rules, 2026.
How is RSU taxation in India split between vesting and sale?
RSU taxation in India runs in two stages under the Income-tax Act, 1961 for FY 2025-26. At vesting, section 17(2)(vi) taxes shares transferred free of cost by the employer as a perquisite, at fair market value under the prescribed method less any amount the employee paid.
At sale, section 49(2AA) of the Income-tax Act, 1961 fixes the cost of the shares at the fair market value already taxed as the perquisite, so only the later rise is a capital gain. Long-term gains on transfers from 23 July 2024 are taxed at 12.5% under section 112.
Section 2(42A) of the Income-tax Act, 1961 makes a share long-term after 24 months, or 12 months for a security "listed in a recognized stock exchange in India", so shares listed only in the US need 24 months.
From tax year 2026-27, the Income-tax Act, 2025 carries the same rules. Section 17(1)(d) taxes the perquisite and section 392(1) requires TDS on it as salary. Section 73, Table Sl. No. 4 fixes the cost at that fair market value, section 197(1)(b) sets the 12.5% rate and section 2(101) keeps the holding periods.
How do you authorise a CA, an ERI or a representative on the portal?
Each route runs through the taxpayer's action or consent on the e-Filing portal, and each helper has its own service. The Income Tax Department's assisted filing help page lists three routes.
- Chartered accountant: a member of the Institute of Chartered Accountants of India, constituted under the Chartered Accountants Act, 1949, added and assigned through the My CA service.
- e-Return Intermediary: added through the My ERI service, or the ERI adds the taxpayer as a client with consent.
- Authorised representative: added through the Authorize / Register as Representative service, where the taxpayer cannot attend to tax affairs personally.
A firm offering income tax return filing with cross-border tax expertise works through one of these routes once the taxpayer adds it or consents to being added. Ask any helper to explain how to declare RSU in ITR schedules for both the vesting year and the sale year.
Common Mistakes in Filing an ITR with US RSUs and Foreign Tax Credit
Seven errors break the rules above.
- Filing ITR-1 with foreign shares. The e-Filing return guide bars ITR-1 for foreign assets.
- Skipping the credit statement. Rule 128(8) allows credit only with Form 67 and the certificate.
- Filing Form 67 after the Rule 128(9) due date. A late form risks denial of the credit.
- Using Form 67 for tax year 2026-27. The 2026 forms table makes it the alternate minimum tax report; the credit statement is Form 44.
- Reporting Schedule FA for April to March. The department's guide uses the calendar year, January to December.
- Leaving vested shares out of Schedule FA. Section 43 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 sets a ₹10 lakh penalty for each year a resident omits a foreign asset. The section exempts small holdings.
- Claiming credit for disputed US tax. Rule 128(4) withholds it until the dispute is finally settled.
A Mumbai employee who vests US shares quarterly and sells some that year reports them in salary, capital gains and Schedule FA. That is how to show foreign RSU in ITR without a mismatch.
What happens after you file the return and Form 67?
Form 67 is filed again when carrying back a later loss leads to a refund of foreign tax already credited, under Rule 128(10) of the Income-tax Rules, 1962. From tax year 2026-27, Rule 76(14) adds a revision of the return, or any other reason, that results in such a refund.
Once disputed US tax is settled, evidence of settlement and payment follows within six months from the end of that month, with a no-refund undertaking; from tax year 2026-27 it goes with Form 45.
Where the Indian return then shows a refund that is delayed or mismatched, HSAG Consulting lists income tax refunds and help with delays or mismatches on its refund claims page. Its note on managing refunds for better cash flow explains the wider cycle.
Get Help With an ITR That Carries US RSUs
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