Received ESOPs From Foreign Company? Small Compliance Mistake Can Cost You Rs 10 lakh Penalty

Received ESOPs From Foreign Company? Small Compliance Mistake Can Cost You Rs 10 lakh Penalty

Many salaried professionals in India receive Employee Stock Options (ESOPs) from foreign companies. But did you know that a small compliance mistake can result in a huge penalty from the income tax department?

A taxpayer who has received ESOPs from his Indian employer in a US-based parent company is required to report the same in the Foreign Assets schedule (Schedule FA). The reporting is mandatory even if you are simply holding the asset or have sold the asset on the same day and paid 100% tax.