Consideration received on repurchase of vested but unexercised Flipkart ESOPs is taxable as “capital gains”, not as “salary perquisite”: ITAT
“The Tribunal held that a vested stock option does not itself constitute a ‘specified security’ under Section 17(2)(vi). The charging provision is triggered only upon exercise of the option and allotment of shares. Until then, the employee holds only a capital asset in the nature of a right to subscribe to shares, and its transfer is chargeable under the head ‘Capital Gains’.
