what is the Cost of Acquistion on Esop/Esos?

Is the shares acquired under ESOP/ESOS liable to capital gains tax even if the same has been taxed under perquisites and included in salary income in the year of such allotment?

what is the cost of acquisition in such a case ?

a. FMV of the shares as on the date of allotment

or

b. Value of perquisities taxed in the hands of employee

Replies (3)

Hi Friend,

Sec 49(2AA) Where the capital gain arises from the transfer of specified security or sweat equity shares referred to in sub-clause (vi) of clause (2) of section 17, the cost of acquisition of such security or shares shall be the fair market value which has been taken into account for the purposes of the said sub-clause.

FMV on the date of exercising & not on the date of allotment.

 

Hi friend,

When shares are issued on ESOP, the difference between the FMV and the exercise price is taxed as perquisite in the hands of the employee. So when the shares are transferred, the same is liable to capital gain Tax. The cost of shares so transferred is FMV which has been considered for calculating the perquisite.

Hi Friends,

Can you explain me the taxation of the following

1. ESOP

2. ESOS

3. ESPP

4. RSU

thanks

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