ESOP Tax Calculator India

📊 Step 1: Perquisite Tax at Exercise

When you exercise ESOPs, the difference between Fair Market Value (FMV) and exercise price is treated as perquisite and added to your salary income. This perquisite is taxed as per your applicable income tax slab.

Formula: Perquisite = (FMV at Exercise - Exercise Price) × Number of Shares

💰 Step 2: Capital Gains Tax at Sale

When you sell the shares, capital gains are calculated as the difference between sale price and FMV at exercise. The tax treatment depends on the holding period:

• Short-term Capital Gains (STCG): If holding period is less than 12 months, gains are taxed at 15% u/s 111A (for listed shares)
• Long-term Capital Gains (LTCG): If holding period is 12 months or more, gains above ₹1 lakh are taxed at 10% u/s 112A

Formula: Capital Gains = (Sale Price - FMV at Exercise) × Number of Shares

📈 Step 3: Surcharge and Cess

A 4% Health & Education cess applies to all tax. Surcharge is calculated based on total income:

• 10% for income ₹50L - ₹1Cr
• 15% for income ₹1Cr - ₹2Cr (capped at 15% for capital gains in New Regime)
• 25% for income ₹2Cr - ₹5Cr
• 37% for income above ₹5Cr