Esops

Any benefit from ESOPs would be taxed as a perquisite in the hands of the employee on the date of exercise, at the difference between the FMV of the shares on the date of exercising the options and the exercise price.

Any subsequent sale of shares by employees would trigger capital gains tax liability in the hands of the employee. For the purpose of computing capital gains, FMV on the date of exercise would form the cost basis.

The holding period of shares shall be reckoned from the date of allotment/ transfer of the security. If such shares are listed on the Indian stock exchange, long-term capital gains tax liability will be ‘Nil’.

if non resident is working for indian company than it will be taxed similalry.

very rightly explained suman..

thanks for the information

Originally posted by : suman
	Any benefit from ESOPs would be taxed as a perquisite in the hands of the employee on the date of exercise, at the difference between the FMV of the shares on the date of exercising the options and the exercise price. Any subsequent sale of shares by employees would trigger capital gains tax liability in the hands of the employee. For the purpose of computing capital gains, FMV on the date of exercise would form the cost basis. The holding period of shares shall be reckoned from the date of allotment/ transfer of the security. If such shares are listed on the Indian stock exchange, long-term capital gains tax liability will be ‘Nil’. if non resident is working for indian company than it will be taxed similalry.

Agreed !

i m agree wid suman