Court Reviews Petition on ESOP Compensation and "Nil" Tax Certificate Under Income Tax Act.

The HC addressed a writ petition challenging the revenue authority's decision on the petitioner's application for a "nil" rate tax deduction certificate under Section 197 of the Income Tax Act, 1961. The petitioner, who received compensation for 33,482 ESOPs from a former employer's group company, must submit an affidavit detailing the reduction of ESOPs from 1,27,552 to 33,482. The petitioner is to file this affidavit within 10 days, with the next hearing set for 06.10.2023.

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Issues involved: Challenge to order regarding application for tax deduction certificate u/s 197 of the Income Tax Act, 1961.

Summary:
The writ petition challenges an order by the revenue authorities regarding the petitioner's application for a tax deduction certificate at a "nil" rate u/s 197 of the Income Tax Act, 1961. The petitioner received monetary compensation for 33,482 Employee Stock Options (ESOPs) from a group company of their previous employer, Flipkart Private Limited (FPS). Initially, the petitioner had 1,27,552 ESOPs, which decreased due to disinvestment in FPS. The petitioner is required to provide details on how the stock options reduced from 1,27,552 to 33,482. The petitioner has undertaken to file an additional affidavit within 10 days to clarify this matter, with the next hearing scheduled for 06.10.2023.

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