ESPP Taxation
Employee stock purchase plans of foreign and Indian employers
- 1TrackLots and perquisites reconciled.
- 2ComputeGains in INR per lot.
- 3FileITR with FA and FTC.
Share your details. We’ll reply on WhatsApp with the next steps and a checklist.
Pick a plan — the fee is adjusted if you hire us within 30 days.
About ESPP Taxation
A clear overview, in simple terms — what it is, why it matters, and how we handle it.
Under an ESPP you buy employer shares at a discount. In India, the discount — the market value on the purchase date minus the price you paid — is a salary perquisite taxed through payroll. When you sell, the gain over that market value is capital gains: long-term after 24 months for foreign shares (12.5%), otherwise at slab rates. Payroll deductions for a foreign ESPP are remitted under LRS, and the shares must appear in Schedule FA.
ESPP purchases often happen twice a year with a 'lookback' price, so each lot has its own cost and holding period. We track lots so that sales are matched correctly and gains aren't overstated.
We also reconcile the perquisite in Form 16 with the plan statements — a mismatch is a common reason for notices.
| At purchase | Perquisite = FMV − price paid |
|---|---|
| Cost for gains | FMV on purchase date |
| Foreign shares LTCG | After 24 months, 12.5% |
| Remittance | Under LRS |
| Disclosure | Schedule FA while resident |
Who this is for
Common scenarios where this service is a good fit.
- Employees enrolled in ESPPs
- Employees selling ESPP lots
- Returning NRIs with ESPP shares
What you get
Clear deliverables so you know exactly what's included.
- Lot-wise reconciliation
- Capital gains computation
- Schedule FA
- Notice support
Expert review before every submission — not just data entry.
Working notes and reconciliations you can rely on in future notices.
Resident Indians, NRIs, expats and cross-border businesses — all served.
Documents required
A practical checklist. We'll tell you if anything else is needed based on your case.
* This is a base checklist. After a quick pre-check, we may ask for additional items specific to your case.
Process
A simple, trackable workflow — designed to avoid back-and-forth.
Lots and perquisites reconciled.
Gains in INR per lot.
ITR with FA and FTC.
Get a quote
We share a clear quote on WhatsApp after a quick checklist pre-check.
- Fixed quote on WhatsApp after a short look at your facts and documents.
- Government fees, if any, are paid at actuals and shown separately.
| Factor | DIY | Indus Tax |
|---|---|---|
| Expert review | ❌ | ✅ |
| Notice risk reduction | ❌ | ✅ |
| Deduction optimisation | ❌ | ✅ |
| Audit-ready records | ❌ | ✅ |
| AIS/26AS reconciliation | ❌ | ✅ |
Share your facts and deadline. We'll reply with the right checklist and a clear quote.
Fee adjusted against our service fee if you go ahead within 30 days.
- Priority CA Call-backSkip the queue — a CA calls you within 30 minutes.₹255
- RecommendedCA Consultation (30 min)Talk one matter through properly with a CA.₹755
- In-depth CA Review (60 min)Documents reviewed before the call, written action plan after.₹1,155
Call-backs run Mon–Sat, 9 AM–6 PM IST. Booked outside these hours? We call you first thing the next working morning.
Compare the 3 plansFrequently asked questions
Answers to the most common questions we get.
Official sources
Indus Tax is a private professional services firm and is not affiliated with any government authority. Rules and fees change — we confirm current positions before filing.
