We pay tax on sale of shares

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Srinivas Gurijala (Querist)

02 July 2014 Hi,

One of my fried working in MNC(HO Located in USA)and its having world wide individual Registered offices,

My question is

HO announce some shares to employees on every year end for their contribution to company's growth on that year

when that share comes to allotted to employees account that time HO deducted tax on that shares and remaining value of shares allotted to employee's name,

If an employee worked in Indian Office(Company also registered in India), suppose he ready to sold his stock which was given by HO(after deducted tax in USA)
1.Employee again pay tax in india or not?

or

2.Indian company how to shown that income in employees salay (In Indian office)

Kindly give suggestion

Thanks for helping

Sanket Shah

Sanket Shah (Expert)

02 July 2014 When shares are allotted it is taxes as ESOP. ESOP are taxed as perquisite in hands of employee (taxale amount = Market value of share less any amount paid by employee). However when shares are sold it is taxed as capital gain. The price at which ESOP are taxed shall be treated as Cost of acquisition.

Rupesh Jain

Rupesh Jain (Expert)

02 July 2014 amount will taxable as perquisite in hand of employee with diff of market price and amount if any paid by employee to company.

after taking shares gain will depend on the holding period if he hold more than 12 month and pay STT then capital gain will exempt.

indian company will include in salary of employee.

Srinivas Gurijala

Srinivas Gurijala (Querist)