Income Tax exemption to the excess payment of tax on ESOPs

POSTED BY shydarao ON December 17, 2013 1:37 pm ONE COMMENT

Hi to all,

I was awarded ESOPs by my company in 2009 at rupees 240/share. (total 4000 shares)

It carried a locking period of 3 years. Recently I exercised the ESOPs at 329/share. Tax also paid for this assumed profit of  89/share i.e about 1.10 lakhs (perquisite tax rate considered as 30.9%)

But due to the market fluctuations I could able to vest the ESOP at an average price of 324/share. Shares were in the demat account for about 25 days only. So I paid an excess of 6100 rupees more than I suppose to pay as perquisite tax.

Can I get any exemption for this excess payment.

My taxable annual income is 11 lakhs. (only salary, no other income).

I am a 26 years aged male.

One reply on this article “Income Tax exemption to the excess payment of tax on ESOPs”

  1. ashalanshu says:

    Dear shydarao, the loss on account of less price of new ESOPs, you have booked STCL which you can set off against any taxable STCG or taxable LTCG. In case in current year, you are unable to set it off, you can carry forward it to next 8Ys.



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