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? 

AI Summary

Tax Implications of Non-Resident Exercising ESOPs: Perquisite Under Section 17(2) or Other Income? Discussion Needed. A non-resident employed outside India by an Indian company is granted Employee Stock Ownership Plans (ESOPs) of Indian company shares. The query seeks to determine if exercising these ESOPs will be taxable as a perquisite under section 17(2) of the Indian Income Tax Act or as income from other sources, given that the individual's salary income is not taxable in India. Additionally, the tax implications of selling these shares to another resident are questioned. The response by a forum participant asks if the issue has been clarified, indicating a need for further discussion.