ASIA PACIFIC Chapter

Reports former employee concerns about vested options and exclusion from a previous liquidity event.

Reviews taxation of employee options at exercise and share disposal under the 2025 Income-tax Act.

Examines conflicting judicial interpretations of payments for vested but unexercised ESOPs and employer withholding implications.

Explains the Bengaluru tribunal's capital-gains treatment of repurchased vested ESOPs; important for cross-border awards.

Uses the Unacademy-upGrad transaction to explain how valuation markdowns and acquisitions can affect vested, unvested and exercised employee options and their tax treatment.

Explains the exercise-price and tax cash-flow burden that can arise before employees have liquidity from their options.

Practitioner analysis of the tax treatment of repurchased employee stock options and the distinction between employment perquisites and capital gains.

RBL Bank allotted fresh equity shares to employees following exercises under its employee stock option plans.

Bangalore ITAT held that vested but unexercised ESOP rights were capital assets and that repurchase proceeds were taxable as long-term capital gains rather than salary perquisites.