Taxation of ESOPs By CA. Umesh K. Gala and CA. Anuj . - Dhruva Advisors
Thus, a valuation report once obtained will be valid for 180 days. Q5 How does the taxation take place in case of PEP or SAR? A5 Cash settled PEP / SARs On exercise of the PEP / SAR, the Company will be obligated to pay cash based on the valuation formula specified for the PEP/ SAR. Since this is paid in cash, it is taxable as normal salary.