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ESOP Tax Calculator
Result
Chart
Show formula & working
Perquisite = (FMV on exercise − exercise price) × shares, taxed at your slab rate · Capital gain = (sale price − FMV on exercise) × shares
Listed: 20% if held 12 months or less, else 12.5% above ₹1.25 lakh · Unlisted: slab rate if held 24 months or less, else 12.5% · + 4% cess
Details
How this works
ESOPs are taxed twice: once when you exercise (the discount is salary) and again when you sell (the rise after exercise is a capital gain).
The value used for the perquisite becomes your cost for capital gains, so the same rupee is not taxed twice.
Frequently asked questions
Do I pay tax even if I don't sell?
Yes, the perquisite is taxed in the year you exercise, whether or not you sell.
What about shares of a foreign parent?
They are treated as unlisted in India and must be reported in your return; foreign tax credit rules may apply.
Is there any deferral for start-ups?
Employees of eligible start-ups may defer tax on the perquisite under conditions; this calculator does not apply the deferral.
Questions about your tax?
Talk to Rytvae about investments that fit your goals and your tax regime.