Hi there! 
More Indians than ever are earning and investing globally. You might be working at a multinational company, holding shares in global businesses, or investing in international funds.
At the same time, many companies now issue ESOPs and RSUs as part of employee compensation to attract and retain talent. So it’s important to understand how they work and how they’re taxed, especially since they form part of your overall portfolio.
With these global income and assets also comes extra compliance. We generally report our income in returns, but it’s different with foreign assets – you’re required to disclose them in your ITR even if they didn’t generate a single rupee in profits. Missing this disclosure can attract heavy penalties of up to ₹10 lakh.
So, if you missed filing your ITR or failed to report income, there’s still an option to correct it by filing ITR-U.
We’ve handpicked threads on these topics in today’s edition.
TOP THREADS
Some of my RSUs vested last month. What would be the tax implications?
RSUs are commonly offered by MNCs, and unlike ESOPs, they’re taxed the moment they vest. Their market value gets added to your salary as perquisite income. Later, when you sell those shares, the profit is taxed again as…Continue Reading
What is ITR-U, and when can you file it?
The last date to file a revised/belated return for AY 25-26 was 31st Dec 2025. If you have missed this due date, you can still file an updated return, i.e. ITR-U. However, you will not be eligible to claim a refund or…Continue Reading
Foreign assets were not disclosed in the ITR. Is there any additional tax while filing ITR-U?
If you own assets outside India, like a bank account, stocks, or property, you must disclose them in your ITR. Since the deadlines for belated and revised returns have passed, you can file ITR-U to report the foreign assets only if they have…Continue Reading
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FAQs
What’s the difference between ESOPs and RSUs?
ESOPs give you the option to buy company shares at a fixed price in the future, while RSUs are shares granted to you directly when they vest. Further, RSUs are taxed at vesting, whereas ESOPs are taxed when they’re exercised.
Can I file ITR-U only to disclose foreign assets?
No. You can file ITR-U only if you need to pay extra tax. If you missed only the disclosure but had no extra income, ITR-U cannot be filed.
How many times can you file an updated ITR?
You can file an updated ITR only once for an assessment year, and it must be filed within 48 months from the end of that assessment year.
RESULTS FROM LAST DIGEST
What’s the penalty for non-disclosure of foreign assets in the ITR?
A) ₹1 lakh (33%)
B) ₹5 lakh (7%)
C) ₹8 lakh (0%)
D) ₹10 lakh (60%) 
60% of people chose the right answer. Well done!