RSU Taxation Puzzle

[ASA13]

Hello experts, 

I have RSUs that are vesting after 3 years in May 2022. During the 3 years, I was on USA payroll for 30 months and Indian payroll for 6 months. I am told that I have pay taxes in India when shares vest, even though I am in USA when the shares vest. I cant figure this out. Here are some more details. Please advise why I have to pay taxes for a temporary stay in India. 

2006 to 2020 - USA resident alien 

Jan 2020 to June 2021 - Indian employee in India 

July 2021 - current - USA resident alien

[TomD8]

With regard to U.S. taxes, as a resident alien you must report all income from sources within and without the U.S.  See page 10, Resident Aliens, in this IRS reference:

https://www.irs.gov/pub/irs-pdf/p519.pdf

The tax laws of India are beyond the scope of this forum.

[ASA13]

Thank you for the reply. What forum would be the best to post this ?

[TomD8]

If you're looking for help with the tax laws of India, sorry, we can't help you.

[Mike9241]

if such a forum exists we wouldn't know it.   

reading the US/India tax treaty might help but if not, then you need the help of a tax pro familiar with the tax laws of India. likely this would be n accounting or law firm that has offices in India and the US.   can not give you a name.

https://www.irs.gov/businesses/international-businesses/india-tax-treaty-documents 

[Rick19744]

I would also recommend you discuss this with your employer.

Based on the limited facts, I would assume that they use an accounting firm that should be able to provide some assistance in this matter.

Keep in mind, all is not lost, since you will get a foreign tax credit on your U.S. tax return; form 1116.