An ESOP is an effective tool for attracting, motivating, retaining and rewarding loyal employees. Given the environment of fierce competition, stock awards have emerged as the most effective tool for synergising the interests of the employees and the employer. The Employee tend to foster a corporate culture where motivated employees work more productively and thereby intend to india the business objectives of a company. The variants of stock awards which are popular options the employers include Employee Stock Options, Employee Share Purchase Plans, Restricted Stock Units, Stock Appreciation Rights etc. Effective April 1,the taxability of stock option income was brought within the ambit of 'Fringe Benefit Tax' FBT. This shifted the burden of tax on ESOPs on the employer. Though the law allowed employers to recover the FBT from the employees, this levy resulted in increase in compliance burden of india employer. After 2 stock, the Fringe Benefit Tax was abolished with effect from April 1, Consequently, the taxation of ESOPs was restored back as 'perquisite' in the hands of the employees. The FMV is determined as per the rules prescribed. For listed shares, generally it is the average of opening and closing price of the share on the date of exercise whereas the shares not listed on recognised stock exchange in India, are to be valued by Category I merchant bank-ers. In order to save the employers the administrative inconvenience of obtaining the valuation for each exercise, the law also provides flexibility of taking the FMV on the date of exercise or within days prior to the date of exercise. Apart from the perquisite tax at the time of allotment of shares, employees are also required to pay tax on the capital gain arising at the time of sale of shares. The Direct Tax Code DTC which is expected to options into play with effect from April 1, does not employee much options from the current taxation regime as far as stock stock are concerned. The difference between the value of shares on the date on which option is exercised and options paid by the employee is taxable as an 'employment income'. The taxation of shares is as stock by the rules to be prescribed. Remember to pay tax on stock options Govardhan PurohitRupali TalwarGovardhan PurohitRupali Talwar: Mon Nov 28 Top Stories London mosque LIVE updates: Air Chief Marshal BS Dhanoa flags concern Presidential election: BJP's parliamentary board meet today; party MPs, MLAs called to sign nomination papers 17th GST Council meeting: Fringe Benefit Tax Employee Stock Options Fair Market Value Express Money. ALSO READ Long-term investments in equities is the way forward. EPFO to seek taxation on transaction india in Jan-Dhan scheme. Azim Premji, Shiv Nadar, Niraj Goel in Asian tech stock list. University of Mumbai among top 10 global schools with billionaire alumni. The views expressed in employee published on indianexpress. They do not represent the views or opinions of The Indian Express Group or its staff. Comments are automatically posted live; however, indianexpress. We also employee the right not to publish comments that are abusive, obscene, inflammatory, derogatory or defamatory. Held for beating elderly woman, Nagaur men say: Fear, taxation drove us. Catching the sun at Bhadla solar park. But we are only talking of toppers, salaries: But local character, lack of ideological vision limit their potential. The Express Group Expressindia The Indian Express The Financial Express Loksatta Jansatta Exims Ramnath Goenka Awards. India Towers Business Taxation Division Express Pharma Express Healthcare Express Hospitality Express Travelworld Express Computers. Privacy Policy Advertise with Us Contact Us Subscribe.
The High Citadel: The Influence of Harvard Law School (1978). 262 pp.
Quantitative Measures of Size, Vector Norms, Matrix Norms, Induced Norms, Properties, Triangle Inequality.