ESOP taxation
Assumptions
Exercise perquisite = positive (taxable exercise FMV − exercise price) × shares. Sale gain/loss = (sale price − exercise FMV) × shares, avoiding double taxation of the exercise spread. Tax rates are your effective assumptions INCLUDING any cess/surcharge, not automatically selected legal rates. Listing, holding period, residency, foreign tax credits, valuation and eligible-startup deferral must be checked separately. No refund is assumed on a loss; tax payment timing is not modelled.
Income Tax Department · ESOP taxation
Estimates are not personalised financial advice. Review assumptions before use.
Tax at your assumed rates
Based on your inputs. Not guaranteed. Exact amount: ₹1,50,800.
Exercise and sale
The exercise spread is not taxed again as a sale gain. A loss is retained without assuming a refund.- 01Exercise outlay₹1 lakhPaid to acquire shares
- 02Exercise-stage tax₹1.25 lakhOn the FMV spread
- 03Sale-stage gain / loss₹2 lakhMeasured from exercise FMV
- 04Sale-stage tax₹26,000At your effective rate
The exercise spread is not taxed again as a sale gain. A loss is retained without assuming a refund.
View detailed breakdown
Why are there two tax stages?
Exercise and sale are shown separately. Review the fair-market-value basis and assumed rates; employer withholding and final liability may differ.
Detailed results
| Result | Value |
|---|---|
| Tax at your assumed rates | ₹1.51 lakh |
| Exercise cost | ₹1 lakh |
| Taxable exercise perquisite | ₹4 lakh |
| Assumed exercise-stage tax | ₹1.25 lakh |
| Sale-stage gain / loss | ₹2 lakh |
| Assumed sale-stage tax | ₹26,000 |
| Sale proceeds less exercise cost and assumed tax | ₹4.49 lakh |