ITAT treats Flipkart ESOP buyback payout as long-term capital gains, not salary
The Bengaluru ITAT held that a Flipkart executive’s payout from repurchased, unexercised vested ESOPs should be taxed as long-term capital gains because no shares were allotted and no options were exercised.
Bengaluru ITAT ruled that Flipkart executive Pramod Kumar Jain’s payout from repurchased unexercised vested ESOPs is taxable as long-term capital gains, not salary perquisites, since no shares were allotted or options exercised.
Why this matters
The ruling adds a tax and legal development to Flipkart’s operating moves, following iPhone 16 discounting, planned Bengaluru food delivery, and Uttar Pradesh 126 Minutes expansion.
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