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taxation of cash recd instead of ESOPS

31 August 2018

An individual receives cash instead of ESOPS from a foreign company because the company has demerged. How would the cash received be taxed?

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4 Replies

(Guest)

Yes it's taxable income in hand of individual

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aishwarya huskur (24 Points)
Replied 31 August 2018

Under which head and how??

(Guest)

As per a recent circular issued by the income tax department, the condition that STT should be paid on the acquisition of shares to qualify for the exemption from long-term capital gains (LTCG) tax is not applicable to shares allotted through ESOP, so long-term capital gain arising on sale of shares acquired under SEBI