ESOPs from foreign employers are taxed as salary on exercise and as capital gains on sale; disclose in Schedule FA.
This infographic explains how to report ESOPs from foreign employers in the Indian ITR. ESOPs are taxed as salary at exercise and as capital gains on sale. If tax is paid abroad, claim foreign tax credit by filing Form 67. Disclose ESOP holdings in Schedule FA. Non-reporting can lead to penalties under the Black Money Act.