Unexercised ESOP buyback gains taxable as LTCG, not salary income: ITAT
- Source
- The Economic Times - Industry
- Source link
- https://economictimes.indiatimes.com/industry/banking/finance/unexercised-esop-buyback-gains-taxable-as-ltcg-not-salary-income-itat/articleshow/132868870.cms
- Published
- 2026-08-04 17:53:29
- Discovered by ProcIntel
- 2026-08-04 22:56:17
- Category
- Procurement & Supply Chain News
- Geography
- India
- Organisations
- —
- Review status
- Pending
- Record type
- REAL
Summary
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.
Procurement Relevance Gate
FAIL
— score 7.0/100 — evaluated 2026-08-04 22:56:17
Only geographic exposure matched — no substantive content indicator, so this cannot pass alone.
- geographic_exposure (weight 8) — matched on "1 linked geography"
Initial Signal Assessment ProcIntel's automatic, provisional read of this individual Signal -- Initial Significance and Initial Confidence, computed deterministically before any Event extraction or human review.
A provisional, automatically-computed reading of this individual Signal, before Event extraction or human review. Not a final rating.
Not Assessed — this Signal did not pass the Procurement Relevance Gate, or is fictional/excluded test data.