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STCG on ESOP is applicable or not

Ritesh.D.jain (CA Job) (232 Points)

01 March 2008

Is STCG is applicable when the shares are received by employee after charging FBT ?

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3 Replies

CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 01 March 2008

STCG IS SHORT TERM CAPITAL GAIN... AND IT HAS NO RELATIONSHIP WITH FBT

Ritesh.D.jain (CA Job) (232 Points)
Replied 03 March 2008

after receiving the shares if sold in the market the gain arrising from the same is taxable income or not ?

Arpit Jain (management trainee) (26 Points)
Replied 08 March 2008

At the time of allotment of shares under ESOP there is no question of capital gain tax. when such shares are sold later on, For the purpose of calculating capital gain , the cost of acquisition of shares will be taken to be the FMV that has been taken as the basis for computation of FBT on ESOP.