Estimate the perquisite tax at exercise and the capital gains tax at sale for your ESOPs or RSUs.
Use 0 for RSUs.
Your highest income tax slab.
On a perquisite value of ₹1,75,000 — (FMV − exercise price) × shares, taxed as salary income.
Long-term threshold: 12 months for listed shares, 24 months for unlisted.
Doesn't model deferred taxation available to DPIIT-recognized eligible startups (where perquisite tax can be deferred up to 48 months from exercise). A directional estimate — confirm with a tax advisor before acting on it.
Twice. First, at exercise (ESOPs) or vesting (RSUs), the difference between the fair market value (FMV) and what you paid to exercise is a 'perquisite' taxed as salary income at your slab rate. Second, when you eventually sell the shares, any further gain — sale price minus the FMV at exercise — is taxed as a capital gain.
The FMV at exercise, not the exercise price. You've already paid tax on the gap between FMV and exercise price as a perquisite, so only the gain from FMV-at-exercise to your eventual sale price is taxed again, as a capital gain.
For listed shares, long-term (held over 12 months) gains are taxed at 12.5% with a ₹1.25 lakh/year exemption, and short-term gains at 20%. For unlisted shares (most startup ESOPs before an IPO), long-term (over 24 months) is taxed at 12.5% with no exemption, and short-term at your regular income slab rate — often the costliest scenario.
Yes, if your employer is a DPIIT-recognized eligible startup — perquisite tax can be deferred until the earliest of 48 months from exercise, you leaving the company, or you selling the shares, instead of being due immediately at exercise. This calculator doesn't model that deferral; check with your employer whether it applies to you.