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ESOP Shares sold

harry (Awaiting ca final results) (461 Points)

14 July 2009

If shares are sold by an employee who acquired such shares under ESOP in a U.S. company, what is the tax treatment of such sale?

what is the rate to be applied?

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3 Replies

harry (Awaiting ca final results) (461 Points)
Replied 15 July 2009

whether RBI OR SBI exchange rates to be applied ?

(Guest)

Hi Harry,

RBI rates are for banks and certain specified transaction so we shall use SBI rates which have been actually used by you.

Amitabh (Consultant) (22 Points)
Replied 23 July 2009

If the individual is a resident and ordinarily resident, the gains arising from the sale of shares would be taxable in India as long or short term capital gains depending on the period for which they are held. Short term capital gains would be taxed at normal rates while long term capital gains would be taxed at special rates.