ESOP Tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 November 2009
I am an employee of Wyeth Ltd. (foreign US Company)working in mumbai Wyeth Ltd. offered me equity shares under ESOP & paid FBT accordingly. Now Weyth Ltd. is taken over Pfizer Ltd. (foreign Co. -US).All my ESOP Shares were within the lock-n period of 3 years. Hence the co. took over my shares at a price of Rs. 10 Lacs , & after deducting tax of Rs.2.5 lacs under US Laws, remitted net amt. of Rs.7.5 lacs. Am I further liable I Tax on Capital Gain under Income Tax Act 1961 in India ? If so, what would be my tax liability
02 November 2009
Since you have acquired shares when fbt was applicable. Therefore the cost to you is 0. Now you are selling the shares at Rs.7.5 lakhs and you are liable to pay capital gains tax. However please note that you have to calculate the period of holding if it is less than 12months then short term capital gains tax and taxed at the rate of 10% and if it is more than 12 months it becomes long term capital gain which is exempt from tax.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Reopen of assessment proceeding
- Is any professional CA is here please reply
- EPF FULL & FINAL RULES IN 2026
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Experts need help
- Putting a heading on received mail
- Rental income gst and it purpose
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
