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, and microcontrollers.

Indian TI engineers receive RSU grants in TXN stock. What makes TXN distinct from many semiconductor peers is its generous dividend — TXN pays one of the highest dividends in the semiconductor sector, making Form 67 a routine requirement for Indian TI RSU holders.

Texas Instruments' RSU structure

Grant type	Details
RSU (Restricted Stock Unit)	Primary grant for most engineers
PSU (Performance Stock Unit)	Available at Director and above; TSR-linked
ESPP	TI operates an ESPP for eligible employees

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

Vest dates: Annual, on the anniversary of the grant. First vest 1 year from grant date.

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:

Section	What to look for
Stock Plan → Holdings	TXN lots: shares, vest date, cost basis
Stock Plan → Transaction History	RSU release events (annual pattern)
Tax Center → Tax Documents	Form 1042-S (dividend withholding)
Statements	Annual account statement for Schedule FA

Account number: Found in ETrade account settings. Use this in Schedule FA. The custodian entity is **ETRADE Securities LLC** (or Morgan Stanley Smith Barney LLC post-integration — check your statement for the exact legal entity name).

TXN share price and dividend

TXN is known as a capital return machine — the company returns essentially all free cash flow to shareholders via dividends and buybacks.

Metric	Value (approx 2026)
Share price	$180–$220
Annual dividend	~$5.20/share
Dividend yield	~2.5–3%
Payout frequency	Quarterly
Ex-dividend months	February, May, August, November

For Indian engineers holding TXN shares, the quarterly dividend creates a recurring Form 67 obligation each year.

Indian tax treatment: RSU perquisites

At vest (annual for TXN):

• Perquisite = shares vested × TXN closing price on vest date × SBI TTBR
• TDS deducted by TI India (Texas Instruments India Private Limited)
• Reflected in Form 16 Part B and Form 12BA

Key difference from quarterly-vest companies: TXN vests once per year. This means a larger single perquisite event — if 1,000 shares vest at $200, the perquisite is $200,000 = ~₹1.68 crore in one shot. Employer TDS on this is significant and will be spread over the financial year by the payroll system.

At sale:

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

TXN dividend: the Form 67 calculation

TXN pays quarterly dividends. For Indian engineers:

1. US withholding: 25% (with W-8BEN filed for DTAA benefit) or 30% (default)
2. Indian tax: At slab rate on gross dividend as Income from Other Sources
3. Form 67: Foreign tax credit for the US WHT — eliminates double taxation

Annual dividend 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% + cess on ₹2.18 lakh gross: ~₹68,000
• Foreign tax credit (lesser of US tax and Indian tax): ₹54,600
• Net Indian tax after credit: ~₹13,400

The 25% US withholding covers most of the Indian tax liability. Ensure W-8BEN is filed with E*Trade to get the 25% rate (not 30%).

Form 1042-S for TXN dividends: Available in E*Trade Tax Center by mid-February for the prior calendar year. Shows gross dividend (Box 2) and amount withheld (Box 7a).

Form 16 and Form 12BA reconciliation

TI India payroll handles TDS on RSU perquisites:

Item	Form 16 location
Annual RSU perquisite	Part B, Section B(1)(b) — Value of perquisites under Section 17(2)
TDS on perquisite	Part A; Form 26AS confirmation
Form 12BA	One entry per vest event (1 per year for TXN)

Since TXN vests annually, Form 12BA should have one row per active grant per year — simpler to verify than quarterly-vesting employers with 4 rows per grant per year.

Verify: TXN closing price on your annual vest date (available on Yahoo Finance, NASDAQ historical data, or the E*Trade transaction confirmation). Compare to the FMV in Form 12BA.

Schedule FA for TXN shareholders

Table A2 in ITR-2 Schedule FA:

Field	Value
Country	United States of America (US)
Institution	E*TRADE Securities LLC
Address	671 N. Glebe Road, Arlington, VA 22203, USA
Account Number	Your E*Trade account number
Status	Beneficial Owner
Peak Value (INR)	Highest TXN × shares × SBI TTBR during Jan 1–Dec 31
Closing Value (INR)	Dec 31 TXN price × shares × Dec 31 TTBR

Note on Morgan Stanley integration: Morgan Stanley acquired E*Trade. The stock plan entity may show as "Morgan Stanley Smith Barney LLC" on some documents. Use whichever legal entity name appears on your account statement as the institution name.

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

Indian tax treatment: same as RSU — perquisite (15% discount component) taxed at purchase; capital gains at sale.

Advance tax for annual TXN vest holders

Because TXN vests once per year (not quarterly), the perquisite hits your income in a single large amount. If TI India's payroll TDS doesn't fully cover your total tax liability (including any planned RSU sales), you may owe advance tax.

The timing problem: If your vest is in Q2 or Q3 of the Indian FY (say, August vest), you need to:

• Estimate the perquisite by June 15 (first advance tax instalment)
• This is difficult if you don't know the stock price at vest yet

Practical approach: Use today's TXN stock price as your June estimate. Adjust in September (you'll know the August vest price). Final true-up in December and March.

See advance tax quarterly calendar for the full calculation method.

US estate tax: TXN is a particularly important case

TXN shares in E*Trade are US-situs assets. At ~$200/share and annual vests of 1,000 shares for a senior engineer, TXN holdings can accumulate to $200,000–$500,000 over a career.

US estate tax for NRAs above $60,000:

• $200,000 in TXN → ($200,000 − $60,000) × 40% = $56,000 exposure
• $500,000 in TXN → ($500,000 − $60,000) × 40% = $176,000 exposure

TI engineers with substantial accumulated TXN holdings should:

1. Consider selling older lots (LTCG-eligible) and redeploying into UCITS ETFs (no US estate tax)
2. Consult a CA or financial advisor familiar with US estate tax for NRAs

TXN dividend vs growth stocks: should you hold for income?

TXN's 2.5–3% yield is real income, but after Indian taxes, the net yield for investors at the 30% slab is approximately:

• Gross yield: 2.7%
• After US WHT (25%): 2.0% net cash received
• Indian tax on gross: ~0.9% (31.2% of 2.7%)
• Foreign tax credit recovers most US WHT
• Net yield after total tax: ~1.8–2.0%

This is a decent yield, but the Form 67 annual filing, Schedule FA administration, and US estate tax exposure make TXN less attractive as an income vehicle for Indian investors compared to, say, CSPX (which accumulates dividends internally and avoids the WHT entirely).

If holding TXN primarily for dividend income: Factor in the annual administration cost of Form 67 filing. The form itself is not complex, but the time and CA fees for dividend from a $5,000 TXN position may not be worth the effort.

Compensation by level

TI India (Bengaluru) works across analog design, embedded processors (C2000, Sitara, SimpleLink), power management ICs, and DSP.

Level	Title	RSU grant (approx)	Vest schedule
Engineer	Design / SW Engineer	$20,000–$50,000	3-year annual
Senior Engineer	Senior Design Engineer	$50,000–$100,000	3-year annual
Staff Engineer	Staff Engineer	$90,000–$180,000	3-year annual
Principal Engineer	Principal Engineer	$150,000–$300,000	3-year annual
Manager / Director	Engineering Manager	$100,000–$400,000	3-year annual

TI is known for stable, long-tenure employment in India — many Bengaluru TI engineers have held grants through multiple vest cycles and accumulated significant TXN positions.

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

For other employer RSU guides: AMD · ARM · Broadcom · Google · NVIDIA · Qualcomm