Income TaxFY 2026-27 (AY 2027-28)
ESOP Tax Calculator
Two-stage tax on Employee Stock Options: perquisite at exercise + capital gains on sale. With 2024 capital gains rates.
ESOP details
Company type
Marginal slab rate
Total tax
₹1,47,550
Net per share: ₹652
Stage 1 — Perquisite at exercise
Perquisite/share
₹400
Total perquisite
₹4.00 L
Tax @ slab
₹1.20 L
Cess (4%)
₹4,800
Stage 2 — Capital gains on sale
Capital gain
₹3.00 L
Type
LTCG
@ 12.5%
CG tax (incl. cess)
₹22.8 K
Total tax
₹1.48 L
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Stage 1 — Sec 17(2)(vi): difference between FMV on exercise date and exercise price is taxable as salary perquisite. Stage 2 — Capital gains on sale, with FMV on exercise as the cost. Eligible startups (DPIIT) can defer stage-1 tax for up to 5 years.
FAQs
Frequently asked questions
When am I taxed on ESOPs?+
Twice — first at exercise (perquisite), second at sale (capital gains). For most companies the first tax is via TDS by employer in the month of exercise. Sale tax you pay yourself when filing ITR.
What's special about eligible startups?+
Section 192(1C) — DPIIT-recognised eligible startups can defer the perquisite TDS up to 48 months from exercise, or 14 days from sale, or termination — whichever is earliest. Effective FY 2020-21.
Can RSUs be calculated here?+
Effectively yes — set exercise price = ₹0 and FMV on exercise = vesting date FMV. The full vesting value becomes the perquisite, and capital gains apply on appreciation post-vesting.
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