Income tax

YAGNESH HASMUKH DAVE (Querist) 03 March 2014 This query is : Resolved
I AM CITIZEN OF INDIA & WORKING WITH COMPANY IN INDIA THE SAID COMPANY HAS CREDITED TO MY A/C.THE VALUE OF SHARE I.E 11,25,602 BEING VALUE OF PERQUISTIES U/S 17(2) AND INCLUDED IN MY TAXABLE SALARY IN FORM NO 16.THE SAID SHARE ARE GIVEN BY THE EMPLOYER IS LISTED IN NEWYORK EXCHANGE NOW I AM SELLING THE SHARE WITHIN ONE YEAR OR AFTER ONE YEAR THROUGH SHARE BROKER IN NEW YORK WHO HAS REMITTED THE SALE PROCEEDS OF THE SHARE IN USD VALUE & CREDITED TO MY SB A/C IN INDIA IN INR WHETHER SHORTTERM OR LONGTERM CAPITAL GAIN IS ATTRACTED & PAYABLE BY ME ALONGWITH MY SALARY INCOME TAX RETURN PL EXPLAIN

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Vineet (Expert) 03 March 2014
1. I presume, the ESOP shares were granted to you at zero value. So your employer included the market value of shares as on date of execrcise (i.e. crediting shares in your account) in your taxable salry as perk.

2. Since you are selling shares on Newyork Stock Exchange, STT will not be paid. Hence difference between sale price and the perk value alreadt taxed in your hand, will be chargeable as capital gains tax in your hand.

3. If you have held these shares for more than one year, the capital gains is long term, you get benefit of indexation and 20% tax rate (or 10% without indexation). If less than one year, it is short term capital gains and will be taxable as per normal tax rate applicable in your slab.