ESOP buyback Taxations

Income Tax
1

Hi Team

I want to understand how amount via recieved ESOP buyback will be taxed. I havent exercised the option. Options were granted and vested now and company is offering buyback

Company is Pvt Listed USA firm

I saw multiple options on internet syaing both Other income or LTCG. Want to understand what is right stance

2

Hey @Vaibhav_Gupta,

The buyback amount will be taxed as LTCG or STCG, depending on how long you held it, because you are transferring your “right to acquire shares” to the company back.

Hope this helps!