RSU vesting tax
Understand the salary tax on shares that vest.
Incremental tax at vesting
FY 2026–27 · Resident individuals below 60 · Ordinary income up to ₹50 lakh.
Understand your result.
Estimate the incremental salary tax on a share vesting benefit valued in INR. Vesting tax and capital gains on a later sale are different stages and should not be combined without checking their rules.
The taxable perquisite is based on the entered fair value less any amount paid. Shares suggested to cover the tax are an arithmetic estimate, not a broker instruction.
A worked example.
Using this calculator’s default inputs, incremental tax at vesting is ₹41,600. This is an illustration of the stated formula, not a forecast.
See the example inputs
| Annual gross salary | ₹18,00,000 |
|---|---|
| Shares vesting | 100 shares |
| FMV per share in INR | ₹2,000 |
| Amount paid per share | ₹0 |
| Tax regime | New regime |
| Eligible old-regime deductions | ₹1,50,000 |
A common mistake to avoid
Counting the same vesting benefit in both annual salary and the separate shares input.
Questions you might have.
Does this calculate tax on a later sale?
No. Capital gains, foreign reporting, currency conversion and brokerage on sale are outside this vesting model.
Which exchange rate should I use?
Enter the prescribed INR valuation for your situation. This tool does not fetch or select a live or tax conversion rate.
Prepared by INDwise · Calculation checks: 29 October 2026 · How we check the maths · Report a correction
How we calculate it
Taxable vesting perquisite = (INR fair market value − amount paid per share) × shares. Incremental tax = tax including perquisite − salary-only tax.
Assumptions & things to know
FY 2026–27 planning estimate for resident individuals below 60, ordinary income up to ₹50 lakh. Includes the ₹75,000 new / ₹50,000 old salary standard deduction, resident rebate, new-regime rebate marginal relief and 4% cess. Excludes capital gains, surcharge, foreign tax credits, agricultural income and special-rate income. Inputs are rounded to the nearest ₹10 for taxable income; final tax to the nearest ₹10. Check eligibility and current rules before filing. Salary input must exclude this vest. Use the prescribed INR FMV/exchange conversion; no live FX is fetched. Capital gains on later sale, foreign disclosures and sell-to-cover brokerage are excluded.
Income Tax Department — salary incomeSource references checked 29 October 2026. Rates and rules may change.
Your privacy & sharing
Your financial inputs are used only within this page. Saved calculators use this browser’s local storage. Sharing creates a link with the entered values, so anyone with that link can see those values. A downloaded summary stays on your device.