ITAT rules ESOP buyback proceeds to be treated as capital gains
The Bengaluru bench of the Income Tax Appellate Tribunal (ITAT) has clarified that vested employee stock options are not subject to salary tax until the point of exercise. The tribunal determined that funds gained from the buyback of unexercised vested options must be classified as long-term capital gains rather than salary income. This decision was delivered in relation to a case concerning a Flipkart employee who received a payout of ₹2.33 crore.
by shortkt.com✓