Tax implication on EBS (Employee Benefit Scheme)

How to deal with the following situation.

Mr A is an employee of IBM India PVT LTD. He has been given shares of IBM US few years back  i.e.2003 under employee benefit scheme. (Under this scheme employee is not entitled to whole Sale Price, but only to difference between Sale Price and Issue Price.) Now those shares are sold. So what would be the tax implication for AY 2010-11??

Please keep in mind amendment to Sec 17(2) and also that its not taxed in US as per treaty.