jitendra k jain
4 years 8 months ago
In india ESOP value of which sometime runs into 100 crore are not taxed at the time of exercise of esop option but these are taxed at the time of sale of such shares which in any case are taxed as capital gain attracting very low tax rate.earlier when tax rate of lomng term capital gain was nil various executives such as mR puri of HDFC must have got tax free income of 800 crore by selling shares.
whereas in USA which country first generated this idea of ESOP tax the ESOP at the time of exercising the option.Musk of tESLA has paid more than $ 10 billion as tax as he has exercised esop option.He has sold his old holding of more than 1$ 15 billion of Tesla shares
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It is ironic that poors like security officers etc have to pay income tax on its income but rich executives by esop exercise are able to avoid tax worth billions through tax planning by way of esop
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