Facts:
1. An individual who is an employee of a Company in India has been given RSU and ESPP of a Foreign Company (USA) during 2016-17. This he has exercised as per the vesting schedule and he has been issued certain number of stocks.
2. While granting stocks certain number of stocks are withheld to meet tax liability in US and after reducing these stocks, the balance is given to the employee. Tax certificates, i.e. 1042-S is made available to employee.
2. Indian company where he is an employee, also has calculated perquisite based FMV on this and properly deducted TDS and remitted the TDS and issued Form 16 for 2016-17 and it is properly reflecting in Form 16 Part A and Part B.
3. Employee wants to file his ITR for 2016-17. He wants to avail DTAA benefits and wants to know if any refund is possible. Employee is an Oridnary Resident in India during 2016-17.
Queries:
1. Whether tax has suffered twice both in US and also in India in this case? If yes, whether employee can claim DTAA credit or refund?
2. What is the tax implication of stocks which have been withheld for meeting US tax liability. Whether this should be considered as Sale for Capital Gain taxation in India? If yes, any credit can be claimed as tax is already withheld in US in the form of stocks. What is the DTAA benefits in this case?
3. Is there any tax return which an employee should file in US in this case? Is there any due date? (Employee is a Resident in India during 2016-17)
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