Amount received on sale of shares received as ESOPS will be taxed as capital gain or any other head? If Capital Gain then what exemptions/deduction are available under sub sections of 54. Except 54F. Important points (1) Shares are of unlisted company (2) More than 24 months old (3) No amount paid during exercise of option.
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Facts in Brief • An individual will receive certain amount in F.Y.2023-24 on account of sales of shares received under ESOP. • The shares were received more than 24 months back. • The company is a unlisted foreign company. • The amount paid at the time of exercising the option for ESOP more than 24 months back was negligible • No amount was offered for taxation in the year of exercise for ESOP. Query • Taxability of amount which will be received in F.Y.2023-24 on sale of shares under ESOP • STCG or LTCG • Calculation of amount of gain…
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In case the overseas company issues stock options to the employees of the subsidiary and there is no recharge arrangement. Is the Indian company still liable to include the ESOP costs in the cost base (for cost plus method or TNMM with net margin based on cost) in case it renders services to its other AE
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To ADMN. Regret that my query posted on the Topic, a few days ago, has thus far remained to elicit an eminent ANSWER from your inhouse EXPERT; will you please have it attended ! To Add: As per my information, in US and HK, - may be , in certain other countries as well, - unlike in India, there is no taxation of 'perquisite' - hence no TDS, by employer-company in the year in which RSU is vested. That is, unlike in India , RSU attracts tax liability (CGT) only on its 'Sale ', in the year of sale .
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Background Company A is headquartered in US and has a subsidiary company B in India. Company A is primarily owned by a Private Equity firm (approx. 80% ownership) Company A (US company) has issued ESOP to employees including employees of subsidiary company in India. Stock options were issued at a price of $10 per option. FMV as per merchant banker report is $15 as on December 31, 2020 In June 2021, there is transfer of ownership to a new Private Equity company. Both are large PE firms and majority stake exceeding 70-75% has exchanged hands As per transaction price for…
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Suppose, SAR issued by Parent entity to employees of subsidiary with no reimbursement from Subsidiary. Subsidiary claim it as expenses. Is it allowed? If yes, do we have any Case law supporting this?
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Sale of Shares received as ESOPS