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

ESOP taxation on death: exercise taxed as perquisite of deceased; sale taxed as capital gains by the nominee.
On an employee's death, exercise of vested ESOPs by the nominee/legal heir gives rise to a Perquisite (FMV minus exercise price) taxable as salary of the deceased and reported by the legal representative, with TDS typically deducted by the employer; a later sale of the shares by the nominee results in Capital Gains (sale price minus FMV at exercise) taxable in the hands of the nominee/legal heir.