Texas Instruments RSU India guide: vesting, TXN shares, and tax for Indian engineers (2026)

Texas Instruments Incorporated (NASDAQ: TXN) is one of the world's largest semiconductor companies, focused on analog semiconductors and embedded processors. TI has one of the most significant and longest-established engineering presences in India — the Bengaluru design center (established in the 1990s) is TI's largest R&D site outside the United States, with thousands of engineers working on analog design, DSP, embedded systems, power management ICs, and microcontrollers.

What makes TXN distinct from many semiconductor peers is its capital return discipline: TXN pays one of the highest dividends in the semiconductor sector and aggressively buys back stock. This creates a recurring annual Form 67 obligation for Indian engineers — and an estate tax consideration for those accumulating TXN over long careers.

Texas Instruments' RSU structure

Vesting schedule: TXN RSUs follow a 3-year annual vesting schedule — one-third each year on the anniversary of the grant date. This is meaningfully different from the 4-year quarterly schedule at most US tech companies.

Vest frequency: Annual — one vest event per grant per year. If you have multiple active grants (new-hire + refresh), you may have 2–3 vest events per year, all in the same anniversary month.

Vest dates: Anniversary of the grant date — typically the same month as your joining anniversary.

Ticker: TXN (NASDAQ)

E*Trade (Morgan Stanley at Work) — TI's platform

Texas Instruments uses E*Trade (Morgan Stanley at Work) for equity plan administration.

Login: etrade.com or the Morgan Stanley at Work portal using your TI credentials.

Key sections:

Account number: ETrade account settings → Account Details. Required for Schedule FA. Custodian: **ETRADE Securities LLC** (671 N. Glebe Road, Arlington, VA 22203, USA).

Note on Morgan Stanley integration: Morgan Stanley acquired E*Trade. The custodian entity on some documents may show as "Morgan Stanley Smith Barney LLC" — use whichever entity name appears on your specific account statement.

TXN share price and dividend: the capital return machine

TXN is known for returning essentially all free cash flow to shareholders via dividends and buybacks:

Price context:

For Indian engineers who have accumulated TXN over 8–12 years, this is a substantial dividend income stream — but one that requires annual Form 67 filing.

Indian tax treatment: RSU perquisites

At vest (annual — on grant anniversary):

• Perquisite = shares vested × TXN closing price on vest date × SBI TTBR
• Added to salary income for that month
• TDS deducted by Texas Instruments India Private Limited
• Reflected in Form 16 Part B and Form 12BA

Annual vest = large single perquisite: If 1,000 shares vest at $200, the perquisite is $200,000 × ₹84 = ₹1.68 crore in a single month. TI India's payroll typically distributes the TDS estimate across the year, but verify with your payroll team — a year-end TDS concentration can create cashflow issues.

At sale:

• STCG (< 24 months from vest): slab rate
• LTCG (≥ 24 months): 12.5% under Section 112

TXN dividend: the mandatory Form 67

TXN pays quarterly dividends. For Indian engineers, this creates a recurring US WHT + Form 67 cycle:

Annual Form 67 example for 500 TXN shares:

• Annual dividend: 500 × $5.20 = $2,600
• US WHT at 25%: $650 → ₹54,600 (at ₹84 TTBR)
• Indian tax at 30% slab on ₹2.184 lakh gross: ₹68,000
• Foreign tax credit (lesser amount): ₹54,600
• Net Indian tax after credit: ~₹13,400

For 2,000 TXN shares (long-tenure TI engineer):

• Annual dividend: $10,400; US WHT: $2,600
• Net Indian tax after credit: ~₹53,600/year

Ensure W-8BEN is on file with E*Trade (Morgan Stanley at Work → Profile → Tax Information) to get the DTAA 25% rate. Default without W-8BEN is 30%.

Form 16 and Form 12BA reconciliation

TI India payroll handles TDS on annual RSU perquisites:

Since TXN vests annually, Form 12BA should have 1–2 rows (depending on active grants) — much simpler than quarterly-vest companies with 4–12 rows.

Verification: Download vest confirmation from E*Trade → Stock Plan → Transaction History. Check TXN closing price on your anniversary vest date against the FMV in Form 12BA.

Selling TXN shares: your platform options

Option 1: Sell directly in E*Trade

Log in → Stock Plan → Sell. Select specific lots. Proceeds in E*Trade cash; withdraw via international wire.

Suitable for: Employees who sell annually at vest to diversify out of TXN concentration.

Option 2: Transfer TXN shares to Rovia

Rovia (powered by Alpaca Securities LLC) supports ACATS transfers from E*Trade. Transfer TXN shares in-kind — no sale, no capital gains event.

Why Rovia for TI engineers:

• INR-denominated portfolio view including dividend income tracking
• India-specific STCG/LTCG tracking across annual vest lots
• Streamlined repatriation — useful for engineers who want dividend income deposited in India regularly
• Simple interface; dividend income auto-records in Rovia transaction history

ACATS from E*Trade to Rovia:

1. Open Rovia account; complete KYC
2. In Rovia: initiate inbound ACATS (provide E*Trade account number)
3. Select TXN lots to transfer; 3–7 business days; no tax event; cost basis transfers
4. Confirm completion; future dividends will be received in Rovia

Schedule FA after transfer: Custodian changes to Alpaca Securities LLC (420 Montgomery Street, San Francisco, CA 94104, USA).

Dividend handling in Rovia: After transfer, TXN dividends are paid to your Rovia account (net of 25% US WHT). You'll still receive a Form 1042-S (from Alpaca/DTCC) and need to file Form 67 — the platform change doesn't affect the Indian tax obligation.

Option 3: Transfer TXN shares to IBKR

IBKR offers lower transaction costs and access to UCITS ETFs for reinvestment after selling TXN.

ACATS to IBKR: IBKR Client Portal → Transfer & Pay → ACATS → provide E*Trade account number. 3–5 business days; no tax event.

Schedule FA when using IBKR: Custodian is Interactive Brokers LLC (One Pickwick Plaza, Greenwich, CT 06830, USA).

IBKR dividend handling: IBKR provides Form 1042-S at year-end for dividend WHT. Their reporting is clean and detailed — useful for Form 67 calculation.

Schedule FA for TXN shareholders

Table A2 in ITR-2 Schedule FA:

LTCG planning for TXN holders

TXN's 3-year annual vesting means you build lots once per year per grant. With 8–12 year careers at TI Bangalore, many engineers have accumulated 8–12 annual lots across multiple grant cycles.

Lot identification:

• Each annual vest date = one lot
• Lots 24+ months old: LTCG-eligible at 12.5%
• Lots under 24 months: STCG at slab (30%)

Sell priority:

1. Oldest lots first (LTCG treatment)
2. Within LTCG-eligible lots, highest cost basis first (minimise gain)
3. Most recent lots last (STCG — highest tax rate)

Worked example for 8-year TI engineer:

Total LTCG (800 shares): ₹33,60,000 gain → ₹4,20,000 tax at 12.5% vs STCG on same: ₹10,08,000 tax at 30% Tax saving from LTCG discipline: ₹5,88,000

TXN ESPP

Texas Instruments runs an ESPP for eligible employees:

• Discount: 15% off the lower of offering or purchase date price (lookback)
• Offering period: 6-month intervals
• Platform: Also on E*Trade (Morgan Stanley at Work)
• Indian tax: Perquisite (15% discount) at purchase; capital gains at sale

Advance tax for annual TXN vest holders

Annual vesting creates an estimation challenge — the perquisite amount isn't known until the vest date.

Practical tip: If your grant anniversary is in August, the September 15 deadline falls shortly after vest — you'll have the actual perquisite to work with. If your anniversary is in March, you'll be estimating all year and truing up at the March 15 deadline.

US estate tax: a critical issue for long-tenure TI engineers

TXN shares in E*Trade (US broker) are US-situs assets. US estate tax for NRAs applies above the $60,000 exemption at 40%.

Long-tenure TI Bangalore engineers who have accumulated TXN over 8–12 years can have significant US-situs exposure:

TI-specific estate tax challenge: TXN's dividend yield makes it tempting to hold for income. But the more TXN you hold, the larger the estate tax exposure. Every year of holding for income extends the exposure by one more year's vest.

Recommended approach for long-tenure TI engineers:

1. Sell LTCG-eligible lots annually (12.5% tax vs 40% estate tax risk)
2. Reinvest sale proceeds in UCITS ETFs (CSPX, VWRA — Ireland-domiciled, no US estate tax)
3. Hold TXN only for LTCG lots that have recently vested (< 24 months) — the estate tax risk on a recent vest lot is limited by time horizon

The dividend trap: The TXN dividend is real income, but after Form 67 complexity, Indian tax, and estate tax exposure, UCITS ETFs that reinvest dividends internally (like CSPX) are more tax-efficient for Indian investors as a reinvestment vehicle.

Compensation by level

TI India (Bengaluru) works across analog design, embedded processors (C2000, Sitara, SimpleLink), power management ICs, DSP, and microcontrollers. TI is known for stable, long-tenure employment — many Bengaluru engineers have 10–15 year careers with multiple vest cycles.

TI Bangalore is considered a premium semiconductor employer — compensation is competitive with Qualcomm and Broadcom India, though behind NVIDIA India at senior levels.

Related reading

• How RSU double-taxation works — vest, sale, repatriation
• Form 67 step-by-step — annual filing for TXN dividends
• Schedule FA complete guide — foreign asset disclosure
• Advance tax quarterly calendar — managing large annual vest events
• How to repatriate US stock proceeds to India — bringing TXN proceeds back to India
• New tax regime vs old regime for RSU holders — which regime saves more at TI compensation levels

For other employer RSU guides: Adobe · AMD · ARM · Broadcom · Cisco · Fortinet · Google · NVIDIA · Qualcomm · Salesforce · ServiceNow