Employee stock benefits treated as perquisite: employer allotted securities and sweat equity taxable under prescribed fair market valuation.

Substitution of sub clause (vi) of clause (2) of section 17 treats the value of specified securities and sweat equity shares allotted or transferred by an employer or former employer to an employee, free or at a concessional rate, as a perquisite; value equals fair market value on exercise date reduced by amounts paid or recovered, with fair market value and valuation method prescribed, and defines "option" as a right to apply at a predetermined price. It also adds employer superannuation contributions above one lakh and other prescribed fringe benefits as perquisites.

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