The compensation received by the petitioner for diminution in ...

Compensation for diminished ESOPs value is a taxable perquisite, not capital receipt. Entire compensation qualifies as salary if no payment made for retained ESOPs.

Case Laws Income Tax

August 9, 2024

The compensation received by the petitioner for diminution in value of ESOPs is a perquisite taxable under the Income-tax Act, 1961, not a capital receipt. To determine the value of the perquisite, the benefit received by the employee from the specified security should be ascertained. Since no payment was made by the petitioner towards ESOPs and the ESOPs continue to be retained, the entire compensation received qualifies as a perquisite liable to be taxed under the head "salaries". The petitioner is not entitled to a 'nil' certificate of deduction of tax at source. Although the basis for the conclusion in the impugned order is flawed, the rejection of the request for a 'nil' certificate is affirmed.

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The compensation received by the petitioner for diminution in ...

Compensation for diminished ESOPs value is a taxable perquisite, not capital receipt. Entire compensation qualifies as salary if no payment made for retained ESOPs.

Case Laws Income Tax

August 9, 2024

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