ITAT treats Flipkart employee’s ₹2.33 crore ESOP buyback payout as LTCG, not salary
The Bengaluru ITAT held that proceeds from Flipkart’s repurchase of an employee’s unexercised vested ESOPs should be taxed as long-term capital gains rather than salary perquisites. The ruling could influence the tax treatment of similar ESOP exit structures.
Bengaluru ITAT ruled that Flipkart’s repurchase of an employee’s unexercised vested ESOPs is taxable as long-term capital gains, not salary perquisites, establishing a potentially significant tax precedent for ESOP exits.
Why this matters
The tax ruling adds a governance signal to Flipkart’s recent consumer moves, including its iPhone 17 Pro card-and-exchange offer and reports of expanding quick commerce to more Indian cities.
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