What is the default TDS rate on ESOPs/RSUs for NRIs?

The default rate is 30%. This is what your bank or AMC deducts if you haven't claimed DTAA benefits. With DTAA, this can drop to 7.5-15% depending on your country.

How much can I save on ESOPs/RSUs?

Typical savings range: Highly variable based on ESOP value. The exact amount depends on your country's DTAA rate and your investment size.

Income type guide

ESOP/RSU Income TDS

ESOPs from Indian companies trigger tax at exercise/sale. Complex cross-border taxation makes DTAA planning essential for NRIs with stock options.

How it works

What happens to your esops/rsus as an NRI

NRIs with ESOPs from Indian companies face TDS at exercise (perquisite tax at slab rate) and at sale (capital gains TDS). The tax treatment depends on when the shares were granted vs when the employee became NRI.

30%

Default TDS rate

Varies

DTAA rate by country

ESOPs/RSUs rates by country

What each country's treaty says

Sorted by savings potential. 30 countries with a DTAA benefit, 0 with the same rate.

UAE

Article 22 — resident country only

Default → DTAA

30%→0%

ESOP/RSU Income TDS

What happens to your esops/rsus as an NRI

What each country's treaty says

Overpaying on esops/rsus?