ESOP Taxability in case of death of Employee

[Nirrmit]

Hi, Any views that in case of death of employee how the perquisite value and perquisite tax on ESOP vested with him will be treated in hands of nominated member.
Will it be taxable at the time of exercise by nominated member or sale by nominated member and under which head of income

Thanks in advance for your answers  

AI Summary

Tax treatment and timing of vested ESOPs on employee death: perquisite under Section 17(2) vs capital gains Query asks how ESOPs vested in an employee who dies should be taxed in the hands of the nominee: whether the perquisite value and any perquisite tax are chargeable to the nominee at the time the nominee exercises the options or only when the nominee sells the shares, and under which head of income (salary, capital gains, or otherwise) such tax will be levied. The post seeks views on timing and characterisation of tax liability on vested ESOPs upon the employee's death.