Capital Gains, F&O, RSUs and ESOPs: How to File Your ITR Like a Pro

Filing your Income Tax Return (ITR) in India used to be straightforward—especially for salaried employees. But today, with the rise of stock market participation, foreign investments, derivative trading, and equity compensation like RSUs and ESOPs, your ITR may need more than just Form 16.

At Aarvis Solutions, we specialize in handling complex income scenarios and ensuring full compliance—without stress.

Let’s decode the tax implications of each and how to file like a pro:

1. Capital Gains from Shares, Mutual Funds, or Real Estate

Capital gains are profits earned when you sell an asset—like equity, mutual funds, or property—at a price higher than your purchase price.

📌 Key Types:

• Short-Term Capital Gain (STCG): Held for less than 1 year (for equity)

• Long-Term Capital Gain (LTCG): Held for more than 1 year (equity) or 2 years (real estate)

💡 Tax Rates:

• STCG on listed equity: 15%

• LTCG over ₹1 lakh: 10% (equity), 20% with indexation (property)

Tip: Keep digital proof of purchase and sale, especially with demat transactions.

2. F&O and Intraday Trading Income

Unlike capital gains, profits from Futures & Options (F&O) and intraday trading are classified as business income.

📌 Things to Know:

• You must file ITR-3 if you’ve traded in F&O or intraday

• Tax audit may be required if turnover exceeds limits or profit is below 6% of turnover

• Books of accounts should be maintained

Tip: Clubbing F&O income with your salary without proper classification can trigger scrutiny from the Income Tax Department.

3. RSUs (Restricted Stock Units) from Global Employers

If you're working with a multinational company and receiving RSUs, you're taxed on them twice—first when they vest, and again when you sell them.

💡 Tax Treatment:

• On vesting: Taxed as salary income (TDS applicable)

• On sale: Capital gains (short or long term based on holding)

Tip: If you're a resident taxpayer, global RSU gains are fully taxable in India, even if your employer withholds tax abroad. Claim relief under DTAA if applicable.

4. ESOPs (Employee Stock Options Plans)

ESOPs are another form of equity compensation where you “buy” your company’s shares at a pre-determined price.

📌 Tax Events:

• On exercise: Taxed as perquisite under salary (difference between FMV & exercise price)

• On sale: Capital gains

Tip: Keep track of your exercise date, FMV, and sell price—these affect both salary and capital gains components.

5. Which ITR Form Should You Use?

Aarvis Pro Tip: Many salaried individuals file ITR-1 even when they have stock trading or RSUs—this is incorrect and can lead to notices.

6. Why You Need an Expert

• ❗ Capital gains reporting often involves broker statements, 26AS mismatches, and indexation errors

• ❗ F&O turnover calculation is tricky and impacts audit requirement

• ❗ RSUs & ESOPs need foreign income disclosure (Schedule FA)

• ❗ You may miss out on foreign tax credit, or underreport income

At Aarvis Solutions, our team of CAs and tax experts analyze your income holistically, handle documentation, and ensure accurate, compliant filing.

Our Premium Filing Services Include:

✅ Capital gains reconciliation
✅ F&O turnover and audit advisory
✅ ESOP/RSU reporting with foreign tax relief
✅ Advanced tax computation and planning
✅ Error-free ITR-2 and ITR-3 filing

💰 Service starts at ₹15,000/-

Don't File Blind. File Like a Pro.

Book a consultation with Aarvis Solutions today and make your ITR work smarter for you—not harder.

👉 Book a Free Consultation