Suppose I work for company X and I was issued ESOP which I exercised this financial year for 60 at a time when market price was 100/-. So I payed TDS at rate of 30% for notional gain of 40 (100-60). But due to current market correction price came to 65/-. I want to sell it for emergency fund requirement. Is it possible to set off excess tax I paid against my income tax?
If you sell now, you make a gain of Rs. 5/- per share. STCG @ 15% plus surcharge and cess will be charged on that. If your total TDS exceeds your final tax liability you’ll receive a refund from the IT Department.
You may want to consult your accountant. Cheers.