COA in ESPP/ESOP

Income Tax Income from Capital Gains
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1

Hi,

My company give me option to buy company (US Listed) with ESPP, where I gets shared at discounted rate and I can buy with max 15% of monthly salary.

Assume that share price was 100 but I got 10% discounted price 90.

This 10% get added to my income in ESPP perquisite and get charged at slab rate.

What could be cost of acquisition for me when I sell those shares? Is it 90 or 100?

Stock exchange ledger will show that bought at 90 but I also paid tax on 10 so will it be 100 or still 90 and gain will be calculated with sellPrice - 90?

Thanks

2

Hello @villager512 ,

The cost of acquisition in case of ESPP will be the fair market value of the stock on the date of exercise of the option. Therefore it will be 100 as per the example given above.