Taxability of ESOP

Tax queries 656 views 1 replies

Hi,

As per the amended provision, ESOPs are taxable in the hands of employee at the time of exercise.

What will be the treatment in case, an employee in India is alloted ESOP of it's holding company??

Pl.  provide support or document (if any).

Replies (1)

Dear Tushar,

I think Same principles is to be follwed for the taxability of shares of Holding co. as would have been followed if shares were issued by Subsidary Co.

REASONS -

Any benefit due to employer employee relation is treated as perquisite, in this case employee has got shares of holding co only by reason of emplyment in subsidary co.


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