Taxation of employee stock benefits: specified securities and sweat equity shares treated as taxable perquisites based on fair market value. The amendment treats specified securities and sweat equity shares allotted or transferred by an employer to an employee free or at concessional rate as taxable perquisites, defining those terms and fixing taxable value as the fair market value on exercise date reduced by amounts paid by the employee, with fair market value to be determined by prescribed methods; it also taxes employer contributions to approved superannuation funds beyond a threshold and provides for other prescribed fringe benefits to be taxable.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Taxation of employee stock benefits: specified securities and sweat equity shares treated as taxable perquisites based on fair market value.
The amendment treats specified securities and sweat equity shares allotted or transferred by an employer to an employee free or at concessional rate as taxable perquisites, defining those terms and fixing taxable value as the fair market value on exercise date reduced by amounts paid by the employee, with fair market value to be determined by prescribed methods; it also taxes employer contributions to approved superannuation funds beyond a threshold and provides for other prescribed fringe benefits to be taxable.
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