Unexercised ESOP buyback gains taxable as LTCG, not salary income: ITAT

The Income Tax Appellate Tribunal determined that employee stock options are not considered part of salary perks until they are exercised. Any gains from the repurchase of options, which have not yet been exercised, are to be taxed as long-term capital gains. This case revolved around a Flipkart executive who received ₹2.33 crore from repurchased stock options, affirming that the options are treated as capital assets.

Raccontata daeconomictimes.indiatimes.com