- The exercise amount is calculated as follows –
- Exercise price x the number of options exercised.
- Exercise price x the number of options exercised.
- The Perquisite value is calculated as follows –
- (FMV – Exercise price) x No of options exercised
- (FMV – Exercise price) x No of options exercised
- The Perquisite tax is calculated as follows –
- Perquisite value x Tax rate.
- Perquisite value x Tax rate.
How is the exercise amount and perquisite tax calculated?
Updated on March 31, 2021