Taxability of ESOP's granted to NRI by an Indian Co.

[Desikan Srinivasan]

A non resident employed outside India by an Indian Company is being granted ESOP of Indian Company Shares. On Excercise of ESOP will it be taxable as perquisite under section 17(2) in India.?? Or is it taxable under Income from Other Sources as his salary income is not taxable in India?   IF the assessee is selling these shares to another resident which he had procured through ESOP earlier what would be taxability of this transaction regarding perquisites? 

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

AI Summary

Perquisite taxation of ESOPs: whether exercise by a nonresident yields a perquisite under section 17(2) or other income. Query whether the benefit on exercise of employee stock options granted by an Indian company to a nonresident employed abroad is taxable as a perquisite under section 17(2) or as income under the head Income from Other Sources, and whether sale of shares acquired through such ESOPs to a resident affects the tax character of that perquisite.