What is Taxation of SARs?
Nexa Consultancy | Startup & Finance Glossary
The cash bonus received from exercising Stock Appreciation Rights (SARs) is fully taxable as a perquisite, which means it is added to the employee's salary income and taxed at their applicable slab rate in the year of receipt.
Startup Example: An employee receives a ₹50,000 cash bonus from their SARs. This entire amount is added to their taxable salary for the year.
Our payroll services can help manage the taxation of such benefits.