Photo: Hemant Mishra/MintAfter Flipkart’s acquisition by Walmart, many Flipkart employees may sell their vested Employee Stock Options (ESOPs). Walmart has also set aside $500 million (Rs3,363.88 crore) for buyback of shares and ESOPs from the existing and former employees of Flipkart. However, Flipkart employees have the option to liquidate their vested ESOP in three instalments. In such a situation, if we consider that Flipkart is buying back vested ESOPs from employees, then the tax liability lies with the company, i.e. However, if Walmart is buying the ESOPs from Flipkart employees, it will be considered as transferring shares to a third party and in such a case, the tax liability lies with the employees.

Source: Mint May 15, 2018 04:18 UTC