Part DCA - Safe Harbour Rules for income referred to in clause (i) of sub-section (1) of section 9 chargeable to tax under the head (From Rule 10TI to Rule 10TIC)
Fair market value of employee stock options is determined by listing status, trading prices, and merchant banker valuation rules. Fair market value of specified security or sweat equity share, being an equity share in a company, is determined on the date the employee's option vests. For listed shares, the value is generally the average of opening and closing prices on the vesting date, with special rules for multiple exchanges and no-trading situations. For unlisted shares, value is determined by a category I merchant banker on the specified date. The rule also defines opening price, closing price, recognised stock exchange, merchant banker, and specified date.
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.
Fair market value of employee stock options is determined by listing status, trading prices, and merchant banker valuation rules.
Fair market value of specified security or sweat equity share, being an equity share in a company, is determined on the date the employee's option vests. For listed shares, the value is generally the average of opening and closing prices on the vesting date, with special rules for multiple exchanges and no-trading situations. For unlisted shares, value is determined by a category I merchant banker on the specified date. The rule also defines opening price, closing price, recognised stock exchange, merchant banker, and specified date.
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