ESOP Tax Simulator
Compute perquisite tax at exercise and capital gains at sale. Includes startup deferral under Section 80-IAC and old/new regime comparison.
ESOP Details
Tax Impact
Detailed Breakdown
Tax on ESOP perquisite payable in current financial year.
How ESOP Taxation Works in India
Perquisite Tax at Exercise: Taxed as salary: (FMV at exercise − exercise price) × number of shares. TDS deducted by employer in the month of exercise.
✍ Income Tax Act, 1961 — Section 17(2)(vi)
Capital Gains at Sale: Cost of acquisition = FMV at exercise. Gains are LTCG if held >12 months from exercise; STCG otherwise. Foreign ESOPs may have equalization/DTAA implications.
✍ Income Tax Act, 1961 — Section 49
Section 80-IAC Deferral: DPIIT-registered startups can defer perquisite tax for up to 5 years or until sale/cessation, whichever is earlier.
✍ Finance Act 2020 — Section 80-IAC
ESOP taxation depends on employer compliance, valuation, and holding period. Verify with your payroll/CA.