- RSUs taxed via Indian payroll but missing from Schedule FA: usually the ₹1 lakh category.
- Unreported dividends or sale gains abroad: undisclosed foreign income at 60%.
- Shares valued at the 31 March 2026 high-low average, converted at the RBI rate; deadline 31 December 2026.
Which category applies
The FAQs do not mention RSUs by name, so this follows the category definitions:
- Shares whose vesting was taxed through your Indian payroll but which were never shown in Schedule FA: the asset came from income already taxed, so Category 2 (flat ₹1 lakh, up to ₹5 crore of foreign assets) is the natural fit.
- Dividends, sale gains or interest abroad that you never reported: that is undisclosed foreign income, which falls in Category 1 (60%).
- ESPP shares bought with salary that was taxed in India follow the same logic as RSUs.
Many employees have both: taxed shares that were simply not reported, plus small unreported dividends or gains. Getting the split right is most of the work.
How the shares are valued
Listed shares are valued at the higher of cost and the average of the highest and lowest price on 31 March 2026, converted to rupees at the RBI reference rate for that day. Cash left in the brokerage account is part of the foreign assets too.
What to collect
- Vesting statements and payslips showing the perquisite tax on each vest.
- Brokerage statements (E*Trade, Morgan Stanley, Fidelity, Schwab or similar) from the first vest to 31 March 2026.
- Records of sales, dividends and US tax withheld on dividends.
- Your Indian returns for the years concerned.
After FAST-DS
Report the shares in Schedule FA every year, report dividends and sale gains in your return, and claim credit for US tax withheld on dividends under the India–US treaty. See the India–US tax treaty guide.
Sources
- Income Tax Department: FAST-DS FAQs (13 August 2026)
- TaxGuru: FAST-DS 2026 FAQs
- Business Today: how FAST-DS 2026 can help fix past omissions (ESOPs, overseas accounts)
Frequently asked questions
Do I need FAST-DS for RSUs from a foreign employer?
How are RSU shares valued under FAST-DS?
My RSU tax was deducted by my employer. Why is there a problem?
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.