Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

LTCG for ESOP

Others 692 views 1 replies

Santosh

none

24 Points Posted on 17 May 2011

Manisha was allotted stock options which she exercised in 2007 at a total price of 10 lakhs. She sold them in 2010 at a selling price of 36 lakhs through the exchange and paid STT.

Does she need to pay income tax on the gains of 26 lakhs?

Does she need to show the gain as business income in her tax return since it exceeds 20 lakhs?

Does she need to get her transactions audited?

Thanks for the help in getting an answer to the above questions.

Replies (1)

Ramalingam K

Founder & Director - Holistic Investment

21077 Points Posted on 08 May 2014

All you want to know about ESOP, ESPP and RSU Top tips to choose the right bank for your student .A good remuneration package would definitely enthuse and excite young professionals while stepping into the world of employment. Many of them would have been recruited from the campus while others might have come through the process of examination and interviews. Most would perhaps only be aware of the quantum of compensation that they are going to receive. Read more at: https://www.moneycontrol.com/news/planning/all-you-want-to-know-about-esop-espprsu_951518.html?utm_source=ref_article Regards Ramalingam K, MBA, CFP, Director and Chief Financial Planner, Holistic Investment Planners Best Performing Financial Advisor Award Winners from CNBC TV18 www.holisticinvestment.in (Follow us on):- https://www.facebook.com/holisticinvestmentplanners