Taxation of employee securities: benefit from free or concessional allotment taxed based on fair market value less cost upon option exercise. The amendment makes taxable the benefit from allotment or transfer of specified securities to an employee free or at a concessional rate, measuring value as the difference between fair market value and cost (cost treated as nil if no money paid). Securities allotted on exercise of an option are taxable in the year of exercise. Specified securities include employees' stock options and sweat equity shares, the latter defined as equity issued to employees or directors at a discount or for non cash consideration for providing know how, IP rights, or value additions.