Tax note to an employee on exercise of stock options
The start-up holiday under s.80-IAC does not produce a nil tax, a company claiming it still pays MAT at 16.692% of book profit and an LLP still pays AMT at 21.549%, and a company that has already elected s.115BAA cannot claim it at all.
- 3 pages
- 32
- Word and PDF
- 13 September 2026
What it covers
- 1Tax note to an employee on exercise of stock optionson the firm's letterhead
Read the opening
The first part of the format, as it downloads. Blanks are highlighted.
On the firm's letterhead
Date: [Date of the note]
To,
[Name of the employee]
[Employee's address]
PAN [AAAAA0000A]
Subject: Taxation of the employee stock options granted to you by [Name of the company] — exercise window closing on [Date the exercise window closes]
We have been asked to explain the tax consequences of exercising the options granted to you. This note sets them out. Please read paragraph 3 before you decide how many options to exercise.