My company has scheme ESPP where I pay monthly 10% of my sal for ESPP (employee stock option) and company converts my INR into dollar and buys stock on every 6 months based upon discount 15% buy price . Here we have etrade software as broker where stocks are purchased/sold. Etrade does sell to cover option. Etrade has its own FMV on date of sale. But my company doesnot calculate FMV of etrade, it has its own average FMV being calculated. Is it same across company ?
I sold stocks more than FMV of etrade. Do I still need to pay tax or DTAA applicable ?
e.g. purchase price 10$
on 14/01/2021 purchased 10 stocks x 10$ = 100$ ( my salary accumulated amount converted INR to $)
on 15/01/2021 FMV was 12$ which was considered by etrade during sell to cover
on 15/01/2021 etrade sold 12$- 10$ = 2$ as gain x 10 = 20$ as gain so sold 1 stocks sell to cover
rest 8 stocks remained with me.
my company calculated via third party own average stock value FMV as 11$ and reported in 26AS as 11$ - 10$= 1$ x 10 = 10$ as gain amount into 26AS and deducted tax on 10$ gain amount & by received 10$ from etrade and submitted 3$ to 26AS india govt and rest 7$ returned to me.
now I sold at 14/10/2021 at 8 stocks x 20$ = 160$ sale price
Still do I need to pay tax or not ? Should I consider etrade FMV or company FMV?
CAclubindia
