I just sold few shares granted to me under ESOP scheme of US based company and I am based out of India. I understand the holding requirements and arising FBT if the holding requirements are not met.

However, not sure how to claim the refund of capital gain tax withhold in US under DTAA agreement between US and India?

Addtionally, I have few dollars dividend checks lying with me, which I could not cash as I do not have banking acoount in US, the cost was higher than the individual check values to cash in India. Is there anyway I can cash those checks?

Appreciate your help!

No, the capital gain income generated in the U.S. is taxable in the U.S. If you are required to declare this income on your India tax return, then on India Tax return you will claim credit for taxes paid in the U.S.

For cashing the checks, it is for you to find out the best route. Talk to your banker in India.

You may want to try using these check to open an account with ING or HSBC. I believe that BOTH of these banks will open accounts for Indian nationals.

That way, you just endorse the check to ING or HSBC, mail them to these companies (you can get the address from the Internet), and maintain the account for this purpose for the future.