# ITAT Says Flipkart ESOP Buyback Gains Are Long-Term Capital Gains 2026-08-06T17:56:21+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The Bengaluru Income Tax Appellate Tribunal has ruled that gains from the repurchase of vested, unexercised employee stock options are taxable as long-term capital gains, not salary perquisites. The case involved Flipkart executive Pramod Kumar Jain, who received Rs 2.33 crore when 2,653 options were repurchased. Jain had reported the amount as capital gains, but the assessing officer treated it as salary income. The tribunal said an option becomes a specified security only after exercise and share allotment. It treated the options as capital assets and the repurchase as their transfer. The ruling concerns a narrow situation. Tax treatment differs when an employee exercises options and acquires shares, said tax professionals cited by ET and Inc42. Ashish Karundia also pointed to a separate buyback provision that was not considered by the tribunal. Inc42 reports that courts have issued conflicting rulings on similar ESOP payouts, leaving room for further disputes. ## Coverage - legal.economictimes.indiatimes.com - inc42.com Tags: Capital gains, ESOPs, Flipkart, Income tax, ITAT Canonical: https://indianopinion.org/itat-treats-flipkart-esop-payout-as-long-term-capital-gains/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/itat-treats-flipkart-esop-payout-as-long-term-capital-gains/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.