ESOP Tax
Perquisites

ESOPs at the time of exercise form part of the salary. The price of its issue is pre-determined and the difference between the fair price of the shares and its issue price becomes a prerequisite. As per the IT rules, the taxable value of the ESOP on exercise is Fair Market Value (FMV) of the share on the date of allotment / transfer of shares - Exercise Price paid by the employee.