Just need your valuable input on the following details,
One of the client works for Oracle India Pvt Ltd. He had ESOPs from his company Oracle Corporation with quantity 550 which was grated to him since 1 July 2010. Till completion of four year since the ESOPs allotted to him he can sell 1/4th of the total ESOPs each year till next four years or sell in total after four years. On 16th July 2012 he sold 138 quantities of the ESOPs i.e. Oracle Corporation through the companies investment banker Fidelity Investments (see below the transaction details). There were TAX in INR 11,541 deducted by the employer, but recently he received a refund of INR 7,443 with a statement in the mail i.e.
"Please note that in terms of the provisos on Income tax Act, 1961, the gains in excess of the FMV arising on the sale of share would be subject to capital gain tax, this tax on such CG is required to be deposit directly by you on your own to Govt as per the advance tax provision as contain sec 209 of the income tax Act 1961".
Grant date: 01-Jul-10 Grant Price: 21.55$ Exercise Date: 16-Jul-12 Exercise Type: ES Qty: 138 FMV at Exercise: 29.5843$ Exercise Cost: 2973.9 Taxable Income: 1108.73 Total Tax: 342.6 Corporate Exchange Rate: 55.413 TT Rate: 55.01 FMV 31st May 2012: 26.47 Perquisite in USD: 678.96 Tax in USD: 210 Perquisite in INR: 37350 Tax in INR: 11,541 Tax refund INR: 7,443
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