India

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Employee Equity Programs
Frequently Asked Questions
We are pleased to provide a guide around frequently asked questions linked to participation in
Accenture Employee Equity Programs for your reference.

Accenture’s equity programs are subject to country-specific laws, regulations, eligibility rules,
requirements, policies and exceptions which may change over time. While reasonable efforts
have been made to ensure that the information contained in this memorandum is complete
and accurate with regards to the 2017/18 Indian tax year, Accenture cannot be held
responsible for any loss incurred as a result of this information. The information included in
this memorandum is not intended to constitute investment, tax or legal advice, and you are
encouraged to consult with your personal financial, legal and tax professionals regarding the
matters contained herein, to ensure that your equity income is correctly reported in your
Indian tax return/s.

Table of contents Page No.

1. Employee Share Purchase Plan (ESPP) – Taxation Overview 2

2. Restricted Share Unit (RSU) – Taxation Overview 3

3. Selling Shares - Capital Gain/Loss Reporting Requirements 4

4. Example Tax Calculation 6

5. Dividend Taxation 7

a. Irish Dividend Tax Withholding

b. U.S federal back-up withholding tax

c. Dividend Reporting

6. Tax Return Reporting 9

7. Resources 10

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1. Employee Share Purchase Plan (ESPP) –Taxation Overview

1.1 ESPP Overview

Eligible employees up through the Associate Director level can contribute up to 10 percent of pre-tax
compensation for the purchase of Accenture shares. Contributions are taken from after-tax pay.
Contributions will accumulate over a six-month period, called an offering period. At the end of the
offering period, the accumulated contributions are used to buy Accenture Shares at a discount.

The table below summarises the tax and social security position, but should be read in conjunction
with the notes in the following sections. It does not constitute tax advice and it should be noted that
you might have further taxes to pay. We therefore recommend that you consult with your own
independent tax advisor to determine the exact tax consequences of your personal situation.

Particulars Purchase Sale

Is Income Taxable? Yes Yes
Nature of Income Perquisite Capital Gain
*Rate of tax *Marginal tax rates up to 35.535% *Short term (<24 months) -
Marginal tax rates up to 35.535%
or
*Long term (>24 months) –
23.69%
Mode of tax payment Withholding by employer via payroll Payment by employee - Advance
Tax or Self-Assessment Tax
Employer via payroll - Form 16 and
Employee – Income tax return Employee - Income tax return
Reporting (Foreign Asset Declaration) (Foreign Asset Declaration)
Wealth Tax No No
Fringe Benefit Tax NA NA
Social Security payable
by employer No No

*Note: The tax rates above are current for the 2017/18 India tax year. Rates are subject to change. The tax rates include
15% surcharge (applicable only if the total income is Rs 1 crore or more) and 3 % Education cess.

1.2 What are the taxing points and taxable income associated with electing to participate in
ESPP?

ESPP involves a two-stage process, with the associated taxation outlined below:

1 Purchase of Shares Taxed as perquisite – taxable income is calculated as the

difference between fair market value (FMV) and purchase
price (i.e. 15% discount on FMV), converted to INR as at
the date of purchase.

2 Sale of shares Taxed as Capital Gain – the taxable value (in INR) at date
(Refer section 3) of share purchase/acquisition forms the cost basis of the
shares. Any increase/decrease in value through to the date
of sale will represent a capital gain/loss. Please refer to
section 3 for details of capital gain/loss calculation.

Note: Refer to section 3.2 and 3.3 for details regarding FMV and FX rate conversion from US$ to INR.

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2. Restricted Stock Unit (RSU) –Taxation Overview

2.1 RSU Overview

The following information also applies to RSUs awarded under the Voluntary Equity
Investment Program (VEIP).
An RSU is a right to receive shares in the future. When you receive RSUs, you have not yet received
any shares. You have received a conditional right under which the Company will, under the terms of
the Plan, issue you shares at a future date. You are not required to pay for either the RSUs or for the
underlying Accenture shares at the time of RSU award/grant.

The table below summarises the tax and social security position, but should be read in conjunction
with the notes in the following sections. It does not constitute tax advice and it should be noted that
you might have further taxes to pay. We therefore recommend that you consult with your own
independent tax advisor to determine the exact tax consequences of your personal situation.

Particulars Award Vest/Release Sale

Is Income Taxable? No Yes Yes
Nature of Income - Perquisite Capital Gain
*Rate of tax *Marginal tax rates up to *Short term (<24
35.535% months) - Marginal tax
rates up to 35.535%
-
or
*Long term (>24
months) – 23.69%
Payment by employee
Mode of tax Withholding by employer via
- through Advance Tax or
payment payroll
Self-Assessment Tax
Employer via payroll - Form 16 Employee - Income Tax
and Employee – Income tax return
Reporting - return (Foreign Asset Declaration) (Foreign Asset Declaration)
Wealth Tax - No No
Fringe Benefit Tax - NA NA
Social Security
payable by
employer - No No

*Note: The tax rates above are current for the 2017/18 India tax year. Rates are subject to change. The tax rates include
15% surcharge (applicable only if the total income is Rs 1 crore or more) and 3 % Education cess.

2.2 What are the taxing points associated with being awarded RSUs?

RSUs involves a three-stage process, with the associated taxation outlined below:

1 Award of RSUs No income tax implications in the hands of the employee

(receiving the right)
2 Vest/Release of RSUs Taxed as perquisite – taxable income is calculated as the
(acquiring shares) fair market value (FMV) x number of shares awarded,
converted to INR as at the date of purchase.
3 Sale of units Taxed as Capital Gain – the taxable value (in INR) at date of
(Refer section 3) vest/release forms the cost basis of the shares. Any
increase/decrease in value through to the date of sale will
represent a capital gain/loss respectively. Please refer to
section 3 for details of capital gain/loss calculation.
Note: Refer to section 3.2 and 3.3 for details regarding FMV and FX rate conversion from US$ to INR.

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3. Tax Implications of Selling Shares – Capital Gain / Loss
3.1 How is income from capital gains computed on sale of units/shares?

Please note, calculation of capital gains can be complex and may be subject to certain exemptions.
We recommend that you consult your personal financial/tax advisor to assist you in calculating capital
gains/losses for your personal situation.

If the shares are acquired and sold on the same day, there will be no gain on the sale and therefore,
no tax is payable as the market value of your shares has not changed from acquisition to sale. Note
the date of acquisition is as follows under Accenture equity plans:

 ESPP – date of share purchase (occurs twice annually); and

 RSU – date of release/vest.

If the shares are released and you sell the shares at a later date and if the market price of the
Company's shares on the day you sell them is higher than your cost basis in rupee terms, you will
realize a profit which will be taxed either as long term or short term capital gain and taxed accordingly,
as outlined further below.

However, if the market price of the Company's shares on the day you sell them is lower than your cost
basis in rupee terms, this will result in a capital loss which is eligible for carry forward to subsequent
years for offset against future capital gain income.

The income calculation is:

1
 Number of shares sold x FMV as on date of sale x FX Rate to INR; less
1
 FMV on date of acquisition x FX Rate to INR

Note1: The exchange rate to be used for the purpose of capital gains conversion is the State Bank of India Telegraphic
Transfer buying rate as on the last day of month preceding the date of sale both for calculating the sale consideration
and cost of acquisition
Note 2: Provision of the Income Tax Act specifies that First In First Out (FIFO) system should be applied for sale of shares.

3.2 How can I obtain the Fair Market Value of my Accenture shares (FMV)?

FMV can be obtained from https://myholdings.accenture.com/ > Reports > Share Price History. Note
this will always be reported in USD.

3.3 What is FX rate for the purpose of computing income?

As per Rule 115 and explanation to Rule 26 of the Income Tax Rules, 1962, the rate of exchange for
the calculation of the value in rupees of any income in foreign currency shall be the telegraphic
transfer (TT) buying rate of such currency as on the specified date.

Telegraphic transfer buying rate in relation to a foreign currency, means the rate or rates of exchange
adopted by the State Bank of India as per guidelines prescribed by Reserve Bank of India.

Specified date for the purpose of computation is the transaction date, for example as follows:

 ESPP Cost Basis for perquisite calculation – date of share purchase

 RSU Cost Basis for perquisite calculation – date of release/vest
 ESPP/RSU Sales Proceeds for computation of capital gains– last day of month preceding
date of sale (for capital gain/loss calculation)

For TT buying rates, visit https://www.rbi.org.in/scripts/ReferenceRateArchive.aspx or contact nearest

State Bank of India branch.

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3.4 What are the tax implications on income from capital gain?

The tax rate applicable to capital gains will depend on the duration shares are held post acquisition.
For RSUs, acquisition date is the release/vest date for RSUs (i.e; date shares were acquired), not the
original RSU grant/award date.

If the shares are held for less than 24 months, the short-term capital gain arising on sale is taxed at
your personal marginal tax rate. For the 2017/18 India tax year, a 3% education chess charge plus a
15% surcharge applies on any income above INR 10,000,000 (applicable to the total tax payable),
resulting in a maximum rate of 35.5355%. Tax rates are subject to change.

If the shares are held for more than 24 months, a concessional capital gains tax at a rate of 20%* is
due. Please note that these rates apply to shares listed outside of India only. When you sell your
shares, as the gain is taxable, you must report the gain arising in your tax return for the tax year in
which the sale took place.
*The tax rates may go upto 23.69%. This include 15% surcharge (applicable only if the total income is Rs 1 crore or
more) and 3 % Education cess.

3.5 What are tax implications where I realise a capital loss?

Offset of Capital Losses: The Income Tax Act does not allow a loss under the category “Capital
Gains” to be offset against any income from other categories. Long Term Capital Losses can be offset
only against Long Term Capital Gains. Short Term Capital Losses are allowed to be offset against
both Long Term Gains and Short Term Gains.

Carry Forward of Losses: If you are not able to offset your entire capital loss in the same tax year,
both Short Term and Long Term losses can be carried forward for 8 Assessment Years immediately
following the Assessment Year in which the loss was first computed/reported.

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4. Example Tax Calculation
The following is an example of the tax implications upon release of shares and subsequent sale of
shares under each plan. This example assumes:
 A marginal income tax rate of 35.535% (assuming total income exceeds Rs 1 crore)
 A full CGT annual exemption is available.
 The illustration ignores the impact of any capped social tax amounts.

Particulars Currency RSU ESPP

Discount of
0
Cost of acquisition (COA) 15% of FMV
COA per share US$ Nil 46.75
Number of shares released/purchased (A) 100 100

Tax Implications
1. Award/Release/Purchased Nil NA
100
Number of shares released/purchased (A) 100
FMV of the shares on date of release/purchase
55 55
(B) US$
FX rate as on date of release or purchase (C) US$ to INR 60 60
FMV of the shares on date of release/purchase
D = (A x B x C) INR 3,30,000 3,30,000
Cost of acquisition (COA)
(COA $ 46.75 x number of shares 100 x FMV on -
2,80,500
date of release/purchase $55 x FX rate INR 60) INR
Taxable Income (Perquisite)
FMV- COA INR 3,30,000 49,500
Income Tax Payable @ maximum marginal rate
of 35.53% INR 1,17,249 17,587
2. Sale
Number of shares sold (1) 100 100
FMV of the shares on date of sale (2) US$ 65 65
*FX rate (3) US$ to INR 62 62

Sale Proceeds (1 x 2 x 3) INR 4,03,000 4,03,000

Less: Cost of owning
FMV on the date of purchase $55 x number of 3,41,000 3,41,000
shares 100 x *FX rate of INR 62) INR

Income from Capital Gain INR 62,000 62,000

Income Tax Payable @ max. marginal rate of
35.53% on Short Term Capital Gain INR 22,029 22,029
Income Tax Payable @ 23.69% ^ on Long Term
Capital Gain INR 14,688 14,688

Note: The above is for information purposes only. Transaction fees may also apply and are not included
above.

*FX Rate applied for capital gains calculation purposes needs to be considered as the last day of the
month preceding date of sale. Refer to Note 1 in section 3.1 for more details.

^ For Long term capital gains, Indexation of cost of acquisition could be applied based on the year of
purchase. The example above shows a simplified calculation without indexation (which could be
applied). Due to the complexity of capital gains taxation, you are encouraged to seek advice from your
personal tax advisor.

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5. Dividend Taxation
5.1 I will be paid dividends on my units/shareholdings. What are the tax implications in India?

Dividends on shares/units of foreign companies will be taxable in India under the category “income
from other sources”. In India, the dividends from a foreign company (Accenture, incorporated in
Ireland) are taxed at your maximum marginal tax rate and may go up to 35.535% for the 2017/18
India tax year.
Dividend income must also be self-declared in the India tax return in the tax year the dividends were
received. Please contact your tax advisor on reporting dividend income in your India income tax
returns

5.2 I will be paid dividends on my shareholdings. Do I have to pay Irish withholding tax?

Irish withholding tax is required to be deducted by Accenture unless there is formal advance approval
for exemption from the withholding. Under Irish tax laws the required withholding is 20% in absence of
an approved exemption.

Resident India taxpayers are eligible to claim an exemption under the India/Ireland Double Tax Treaty
provided they complete the actions required to obtain exemption approval. Please see section 5.3
below for more details of how to claim such an exemption, or how to mitigate double tax exposure if
you do not obtain the exemption approval in time for dividend payment. Please contact your tax
advisor on this and any other required documentation to be provided before availing such deduction in
the jurisdiction concerned

5.3 How do I claim an exemption from Irish Dividend Withholding Tax?

Accenture has arranged for GlobeTax to help you apply for an exemption from Irish dividend
withholding tax on Accenture shares held at Computershare, Morgan Stanley and UBS Financial
Services. The exemption obtained will apply for five (5) years before it requires renewal. If you are a
resident of India, GlobeTax can help you apply for an exemption for a fee of US$50, payable by credit
card by following the below instructions:

 Access the GlobeTax eCerts website.

 Enter the access code “Accenture.”
 On the Investment Information screen, indicate the type of shares you hold.
 Follow the onscreen instructions.

Please consult the Accenture plc share FAQ and the Accenture Holdings plc share FAQ for full details
on the Irish Dividend Withholding Tax

5.4 Am I subject to U.S. federal back-up withholding taxes on dividend/sale proceeds? If yes,
how do I claim exemption?

You must ensure you have a valid U.S. tax form (IRS Form W-9 for U.S. residents or IRS Form W
8BEN for non-U.S. residents) on file with the company broker(s) in order to receive exemption from
the 28 percent U.S. back-up withholding tax on share sale and dividend proceeds. Log on to the
company broker(s) website (Morgan Stanley or UBS, as applicable) in order to verify your U.S. tax
form status and complete the form if necessary. You must contact your broker(s) directly regarding
the U.S. backup withholding tax process. Completion of an Irish Non-resident V2 Exemption Form will
not exempt you from U.S. federal back-up withholding tax of 28 percent.

 On the Morgan Stanley site, select “Profile” and then select “Tax Information.”
 On the UBS site, select “My Profile” and then select “Forms.”

Please consult the Accenture plc share FAQ and the Accenture Holdings plc share FAQ for full details
on U.S. federal back-up withholding tax.

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5.5 How can I mitigate double tax exposure if I do not obtain the Irish dividend tax withholding
exemption in time for my dividend payment?

If you do not or cannot obtain an exemption due to unobtainability of India Tax Residency Certificate,
Irish dividend withholding tax of 20% will be applied on any Accenture dividends paid on Accenture
shares held in your company brokerage accounts. The Irish tax will be shown as “foreign tax withheld”
(UBS) or “withholding tax” (Morgan Stanley) on your company brokerage statement for the month in
which the dividend is paid. As above, dividend income must also be self-declared in the India tax
return in the tax year the dividends were received.

India and Ireland has entered into a double tax avoidance agreement. Accordingly, if you have been
subject to Irish dividend withholding tax at the point of dividend payment, you may claim a credit for
this foreign tax withholdings when you file your Indian tax return and report dividends to taxation. This
means you would have to pay only the residual India income tax as self-assessment tax (i.e. India tax
at marginal rates, less 20% already paid in Ireland). Please consult your tax advisor on this and
provide your dividend statements, complete with above-mentioned income tax withholding information
so they may advise you on this and assist you with this foreign tax credit claim process.

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6. Reporting of Income

6.1 Which category of equity income does Accenture report to the tax authority on my behalf?

Accenture has a reporting requirement for shares issued under vested RSU awards and shares
purchase programs at the point they are purchased on your behalf (ESPP) or vested/released to you
(RSU/VEIP). These amounts will be included in your Form 16 information reported to the Income Tax
Authority.

6.2 Which category of equity income do I need to personally self-declare?

Please note, you are personally responsible for reporting all income and capital gains on your
income tax return. You are encouraged to work with your personal tax advisor/accountant to
provide details of all equity program awards and related taxable events to ensure your personal
income tax reporting compliance.

Form 16s are generated in accordance with Accenture India’s employer reporting obligations.
This does not include all potential taxable or reportable income associated with your
Accenture equity program participation. In particular, employers are not required to report:

 dividend income, or
 capital gains/losses realised through the sale of Accenture shares.
The receipt of dividends and tax implications of a sale of shares should be reported in your tax
return in accordance with your personal facts and circumstances, upon seeking advice from your
personal tax advisor. Section 7 provides you with useful information on where to access the data
required to support such complete tax reporting.
6.3 Can I see my equity income in my payslip?

Equity income and related tax withholding information will be not reflected in your payslip. Equity
details are instead reflected in the perquisite section of the Form 16.

The equity details are reported at part of 1(b) of the Form 16 and a break-up of this is available in
Form 12BA. Examples of each of these forms are attached for your reference.

6.4 What equity income has tax withholding applied at source?

Only the income Accenture has an employer obligation to withhold tax from and report on will be
subject to income tax withholding at your marginal rate. This is perquisite income (i.e. ESPP purchase
discount and RSU FMV at release/vest). Dividend and capital gain income, where applicable, will be
reportable and any resulting liability payable through your annual income tax return filing (assuming
you have sought an Irish dividend withholding tax exemption as above).

6.5 Are there any Indian foreign exchange regulations I need to be aware of?

st
Under current rules* as of 1 January 2018, a person resident in India:

(i) must repatriate to India and convert into local currency any proceeds from the sale of Company
shares within 90 days after the date of sale of such shares;

(ii) take all reasonable steps to realize and repatriate to India any dividends received.**

Exchange control rules are complex and can change frequently. As such, and as you are personally
responsible for complying with applicable exchange control laws and regulations, you are advised to
consult your legal advisor regarding your obligations under any applicable exchange control laws and
regulations.

* Foreign Exchange Management (Transfer or Issue of Any Foreign Security) (Amendment) Regulations, 2004
** Note that, our brokers facilitate repatriation and reinvestment. You should consult your legal advisor to confirm your choice
to the broker on how you can go about making this election.
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7. Resources
Additional Information For
Questions Regarding:
Access my Form 16
ESPP or VEIP purchases, Share
Option exercises and RSU share
releases
Dividends and/or sales transaction
details and broker statements
SCA or ACHI Founder share
dividend statements (before 1
November, 2015)
Accenture Holdings plc or ACHI
Founder shares (after 1 November
2015)
Market Share Price
Tax information - general
If you can’t find the answer to a year-end equity tax question on myHoldings, you can raise a request
in https://myrequests.accenture.com/ under the HR Question and category as ESPP or Equity
Enquiry.
Please Contact or Refer to:
Form 16 for FY 2017-18 will be uploaded in Allsec site, employee
needs to download from the site.
Reports for all purchase and vest/release data can be generated
via myHoldings.
You need to contact your broker(s) for dividend information for the
period 1 April to 31-March. Access toll-free and direct dial
numbers, as well as websites for both Morgan Stanley and UBS
Financial Services at the below link. Morgan Stanley supports
dividends related to shares acquired via the ESPP and share
options. UBS should be contacted regarding Accenture plc
Founder shares, released RSU shares, and VEIP shares.
Website: https://myholdings.accenture.com/main/brokers.aspx
Boston Financial Corporation
Website: https://www.bfeventcenter.com/accenture/
E-Mail: AccentureDividend@bostonfinancial.com
Computershare
Phone: +1-800-622-6757 (toll-free number if calling from within
the US)
+1-781-575-4735 (if calling from outside the US)
Website: https://www-us.computershare.com/Investor/
You can generate a report to identify the fair market value (FMV)
Accenture applied in calculating the values reported in your Form
16. Access via ‘Reports’ link at the top of
https://myholdings.accenture.com/
Note that FX rates must be calculated per section 3.3 above.
Access the “Resources” link on https://myHoldings.accenture.com
then click on “Country Specific Tax Information” and select ‘India’
from the drop-down list.
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