ITAT Order Boosts Hope for Capital Gains Tax on ESOP Buyback Payouts for Startup Employees

taxation

4 August 2026 at 11:45 am

ITAT Order Boosts Hope for Capital Gains Tax on ESOP Buyback Payouts for Startup Employees

HyperFast News

Summary

The Bengaluru ITAT has directed tax authorities to re-evaluate the tax treatment of ESOP buyback payouts, citing a Karnataka High Court ruling. This decision could support taxing payouts from vested but unexercised ESOPs as capital gains rather than salary.

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ITAT Order Boosts Hope for Capital Gains Tax on ESOP Buyback Payouts for Startup Employees | HyperFast News