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💼 RSU Tax Guide

Amazon India RSU Tax in India — FY 2025-26 Guide

Perquisite tax at vesting, capital gains on sale, Fidelity NetBenefits account, TDS deduction — everything Amazon Development Centre (India) Pvt Ltd / Amazon Seller Services Pvt Ltd employees need to file RSU taxes correctly.

RSU Quick Facts — Amazon India

Parent companyAmazon.com Inc.
Stock tickerAMZN on NASDAQ
Brokerage accountFidelity NetBenefits
Indian employing entityAmazon Development Centre (India) Pvt Ltd / Amazon Seller Services Pvt Ltd
Typical vesting scheduleNon-standard schedule — 5% at year 1, 15% at year 2, then 20% every 6 months
LTCG holding period24 months from vest date
Schedule FA required?Yes — report foreign shares as of Dec 31
Typical grant sizeSDE II grants are typically $100K–$300K in RSU value over 4 years.

How Are Amazon India RSUs Taxed? — The 2 Stages

Stage 1 — At Vesting: On each vest date, the Fair Market Value (FMV) of your shares is added to your salary as a "perquisite" under Section 17(2) of the Income Tax Act. Amazon Development Centre (India) Pvt Ltd / Amazon Seller Services Pvt Ltd deducts TDS on this amount. Amazon India deducts TDS on perquisite value at each vest. High vesting in years 3–4 can push total income into higher surcharge brackets.

Stage 2 — When You Sell: The gain above the FMV at vest is capital gains. Shares are treated as unlisted securities under Indian tax law — 24-month LTCG period applies. The LTCG rate is 12.5% without indexation (Finance Act 2024). STCG is taxed at your income slab rate (up to 30%). No TDS is deducted on capital gains — you must pay advance tax if your total gains tax exceeds ₹10,000.

Important: Must disclose shares in Schedule FA of ITR-2 as of December 31. Failure to disclose foreign assets attracts penalties of up to ₹10 lakh per year under the Black Money Act.

TDS & Sell-to-Cover at Amazon India

Sell-to-cover: Typically yes — Fidelity confirmation will show net shares after tax withholding.

Your Form 16 from Amazon Development Centre (India) Pvt Ltd / Amazon Seller Services Pvt Ltd (Part B) will show the cumulative perquisite value for the financial year. This figure is what you report under Salary in your ITR. Cross-check it against your vest statements in Fidelity NetBenefits.

Your Fidelity NetBenefits Account

Access Fidelity at netbenefits.fidelity.com. Download year-end Form 1042-S for tax records.

Keep the following documents each year: vest confirmation emails, annual brokerage statement, any Form 1042-S or withholding documents. These are your supporting evidence for the perquisite value and capital gains calculation.

Calculate Your Exact Amazon India RSU Tax — Free

Enter your vest quantity, FMV, sale price and income — the calculator handles perquisite tax, capital gains, DTAA and your net after-tax amount.

🧮 RSU Tax Calculator →

ITR Filing for Amazon India Employees

File ITR-2 (or ITR-3 if you have business income). Report perquisite under Salary head, capital gains in the Capital Gains schedule, and foreign shares in Schedule FA as of December 31 of the previous calendar year.

For more detail on the full ITR filing process, see our RSU Tax in India — Complete Guide.

Other RSU Company Guides

Frequently Asked Questions

How are Amazon India RSUs taxed in India?+
At vesting, the Fair Market Value of shares is treated as perquisite income and taxed at your slab rate — Amazon Development Centre (India) Pvt Ltd / Amazon Seller Services Pvt Ltd deducts TDS. When you sell, the gain above FMV at vest is capital gains: STCG at slab rate if held under 24 months from the vest date, or LTCG at 12.5% if held 24 months or longer. Use our RSU Tax Calculator to see the exact numbers for your vest details.
Which ITR form should I use for Amazon India RSU income?+
ITR-2 (if only salaried income + RSU) or ITR-3 (if business income too). Do not use ITR-1 — it does not support foreign assets (Schedule FA) or capital gains from RSU shares. Report the perquisite value from Form 16 under Salary, and capital gains in the Capital Gains schedule.
What is the LTCG holding period for Amazon India shares?+
Shares are treated as unlisted securities under Indian tax law — 24-month LTCG period applies. Selling within 24 months of vesting means STCG at your income slab rate. Holding for 24 months or more from the vest date qualifies for LTCG at 12.5% without indexation (Finance Act 2024). Holding for LTCG can significantly reduce the tax outgo for employees in the 30%+ slab.