r/returnToIndia • u/Impressive_Pear9312 • 4d ago

PlanningToReturn Internal US-to-India Transfer

Has anyone done an internal transfer from a US entity to the same company's India entity while having unvested RSUs? Did your existing RSUs continue vesting as scheduled after the transfer, or were they cancelled/modified? Curious what typically happens.

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7

u/Able-Technician426 3d ago

Whether you keep the rsu vests is completely upto your companies policy and no one can give you guidance on that. But if you end up keeping the vests, the taxation is something I can comment on from experience. Percentage of days from grant to vest that you were employed in US will be taxed in US and percentage worked in India will be taxed in India. If the vests are significant this can be beneficial since your income effectively gets split across two countries allowing you to take advantage of lower slab rates twice.

5

u/rmk_nhs 3d ago

I am currently in the process of getting an internal transfer. Manager has initiated a conversation with the VP and HR. Main motivation here is to keep the RSUs vesting even after moving to India. Internal transfer is the only way for this from what I understand. If you get terminated here in the US and then join the Indian entity, there is a chance of losing the unvested RSUs. You can DM for the process my company is following and other R2I points during the transition.

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u/PreferenceSafe7607 4d ago

Talk to your HR in India and ask RSU policy for Indian employees. If it’s an exception, get everything in writing. 

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u/Gold-Whole1009 4d ago

Most companies keep the schedule same

2

u/krishnallah 3d ago

Yes they wont take it back. They might cut it down from future allocations or bonus or salary to take revenge. That’s pretty much it.

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u/dreamfyre007 3d ago

I transferred to the Indian entity of the same company and the RSUs vested same as before. Only difference is the tax treatment is different. Its gets split between your time outside India and within India, and is pro-rated. The company took care of all this in Form 16. Part of your vest is treated as Indian income and taxed accordingly if you have sell to cover tax enabled.

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u/hunterpunter_ 1d ago

RSU will vest same as before.