Calculate the full tax on your ESOPs: perquisite tax at exercise, STCG/LTCG at sale, DPIIT startup deferral, and your actual post-tax gain.
Step-by-step guide to get the most from this tool
Choose FY 2025-26 or FY 2026-27 so slab and capital-gains rates match your return.
Input the exercise price per share, FMV at exercise, and number of shares exercised.
Add the sale price per share, sale date, and your income tax slab rate.
Enable if your employer is a DPIIT-recognised startup to see tax deferral benefit.
See perquisite tax, capital gains tax, and total post-tax gain from the ESOP.
What makes this tool stand out
Switch financial years for up-to-date slab and capital-gains rates.
Shows tax deferral benefit under Section 17 for qualifying startups.
Calculates perquisite tax at exercise and STCG/LTCG on sale separately.
Auto-detects STCG vs LTCG based on exercise-to-sale holding period.
All calculations in your browser — no data sent to any server.
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Quick answers to common questions
Use the FY selector in the tool to switch between FY 2025-26 (confirmed Budget rates) and FY 2026-27 (provisional). Perquisite tax uses your slab rate; capital gains use the FY-specific STCG/LTCG rules.
ESOP income is taxed at two points: (1) At exercise — the difference between Fair Market Value (FMV) and exercise price is treated as perquisite income, taxed at your applicable income slab rate. (2) At sale — any gain above FMV at exercise is capital gain (STCG or LTCG depending on holding period).
Employees of DPIIT-recognised startups can defer the perquisite tax on ESOP exercise for up to 5 years, or until they sell shares, or until they leave the company — whichever is earlier. This applies to ESOPs exercised after April 1, 2020, under Section 17(2)(vi) of the Income Tax Act.
For unlisted companies, FMV at exercise must be determined by a SEBI-registered Category I Merchant Banker. The company typically provides this valuation. For listed companies, FMV is the average of opening and closing market price on the exercise date on the stock exchange where the shares are listed.
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Enter exercise price
Enter FMV at exercise
For surcharge calculation
Perquisite = (FMV − Exercise) × Shares; CG = (Sale − FMV) × SharesAt exercise, the spread is taxed as perquisite at your slab rate (+ cess/surcharge). On sale, gains above FMV at exercise are STCG/LTCG. DPIIT startups may defer perquisite tax until sale or 5 years.
| Symbol | Meaning |
|---|---|
| FMV | Fair market value per share at exercise |
| CG | Capital gain on sale above FMV at exercise |
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