What is the tax implication on sale of ESOP?
Sale consideration – Cost of acquisition (Fair Market Value on the date of Vesting) = Capital Gains If the shares were sold after 12 months from the date of vesting the Capital gains will be classified as Long Term Capital Gains and the same will not be taxable if sold through the Secondary Market ( Stock Exchanges like NSE or BSE), else it will be treated as Short Term Capital Gains.
