ESOP trust

Querist : Anonymous (Querist) 05 May 2010 This query is : Resolved
Company has given 1000 shares@Rs.10 to ESOP trust under Scheme A which has been purchased by trust via loan received from company itself. Out of above 200 shares not purchased by the employees. Vesting and exercise period expired. Now Company has to further give 1500 shares@Rs.20 ESOP trust under Scheme B. Now questions are?
1)Can trust utilize already existing 200 shares from Scheme A and further purchase from company only 1300 shares? Or it should sale the existing 200 shares in market and remit money after paying capital gain tax to company as repayment of loan.
2)If answer to pt 1. is yes then profit of 10*200=2000 will arise. what will be the tax treatment if trust is made for no profit no loss object?

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