ESOP & RSU Tax Calculator India (2026) — Perquisite & Capital Gains

ESOPs are taxed twice in India: Stage 1 (At Exercise) — the difference between Fair Market Value (FMV) and Exercise Price is treated as perquisite salary income and taxed at your marginal slab rate (typically 31.2%). Stage 2 (At Sale) — the difference between Sale Price and FMV at exercise is treated as capital gains (LTCG at 12.5% if held for >12 months for listed shares, or STCG at 20% if sold earlier).

For foreign RSUs granted by US multinational employers, Stage 1 perquisite tax is deducted in Indian rupees at your top income tax slab rate upon vesting. Upon sale, foreign shares are treated as unlisted assets under Indian tax law, requiring a 24-month holding period from vesting to qualify for 12.5% LTCG. If sold within 24 months, gains are taxed at your income slab rate.

Eligible DPIIT-recognized startups under Section 80-IAC allow employees to defer perquisite tax payment until: (1) Expiry of 48 months from the end of the relevant assessment year, (2) Date of sale of shares by the employee, or (3) Date the employee leaves the company, whichever occurs earliest.