FX rate to be used for RSU sale and transferred via Wire transfer

Hey Balamurugan! Great question about which FX rate to use when reporting RSU sale proceeds for tax in India — this can get confusing since different rates are floating around.

Here's the deal on FX rates for RSU sale reporting & tax computation:

1. Relevant Law & CBDT Guidance

• For capital gains reporting, Income Tax Rules require conversion of foreign currency transactions into INR.

• The Income Tax Department typically expects you to use the SBI TT Buying rate (Telegraphic Transfer Buying Rate) on the date of the transaction.

• This rate is considered the official “reference rate” for tax purposes.

2. Why SBI TT Buying Rate?

• It is a standardized rate published daily by SBI (India’s largest public sector bank).

• Used by tax authorities as the benchmark for forex conversion.

• Provides consistency and uniformity in tax reporting.

3. Your Broker’s Wire Transfer Rate vs SBI TT Rate

• Broker’s rate might differ due to:

  • Transaction fees/charges

  • Slightly different interbank rates

  • Service provider margins

BUT for tax computation, the official rate matters, not the actual amount received.

4. Which rate to use?

5. Reporting & Compliance Tips

• Use SBI TT Buying Rate as per official guidance for reporting in ITR.

• Maintain documentary evidence of the FX rate used (SBI’s published rates on transaction date).

• The difference between the broker’s wire transfer rate and SBI TT rate is not adjusted in the tax return; tax is computed based on SBI TT rate only.

6. Summary