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Treatment of ESOP gains?


23 October 2010 X is a citizen of India. Is working in US since 3 years. He has ESOP shares of American Company. He is planning to come to India in this year. He wants to sell those shares after coming to India once he gets good price of his shares

Whether gain is capital gain? Whether this gain is deemed to be arised in India or US? what is nature of treatment?

24 October 2010 It depend when the shares are sold. If the shares are sold when the assessee is haing the status of NRI then the same would not be taxed in India but once the assessee get the status of resident than all the income arise in india and abroad are taxable in India but a relief is available u/s 90.


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