STCG or LTCG on transfer of ESOP options depends on holding period

N. R. Ravikrishnan Vs ACIT (ITAT Bangalore) Conclusion: Gain arising on transfer of ESOP options should be taxed as long term capital gains where the holding period was more than 3 years as assessee acquired a valuable and transferable right and the right of share constituted capital assets from the date of grant. Held: Assessee claimed long term capital gains (‘LTCG’) arising on transfer of ESOP options however, AO treated the same as short term capital gains (‘STCG’) and consequently denied deduction u/s 54 EC to assessee. It was held assessee on exercise of ESOP options acquired a ...