What is the tax on ESOPs in India?

ESOPs are taxed twice: first as a perquisite (salary income) when you exercise the options, based on the difference between the FMV and exercise price; and second as capital gains when you sell the shares.

Startup Equity (ESOP) Model

Model the future value of ESOPs across funding rounds, dilution, and latest exercise-tax rules.

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Quick Summary: Startup Equity (ESOP) Model

The ESOP Calculator models the potential wealth gain from employee stock options. In FY 2026-27, it accounts for the 'perquisite tax' at the time of exercise and capital gains tax at the time of sale.

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Regulatory Disclaimer

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.