Transfer pricing comparables and adjustments: Tribunal revisits loss-maker status, segmental comparability, working capital relief, and risk allocatio...
Business expenditure disallowance failed where commission, related-party salary and promotion payments were supported by records and inquiry was inade...
Consideration received on repurchase of vested but unexercised employee stock options is characterised as long-term capital gains rather than a salary perquisite. Section 17(2)(vi) applies to specified securities allotted or transferred by an employer and requires valuation upon exercise of the option. An unexercised option is only a right to subscribe for shares; where no option is exercised and no shares are allotted, no specified security arises and no taxable perquisite can be valued. The right is a capital asset, and its repurchase is a transfer. Form 16, TDS and indicative tax statements cannot determine liability contrary to law.
Consideration received on repurchase of vested but unexercised employee stock options is characterised as long-term capital gains rather than a salary perquisite. Section 17(2)(vi) applies to specified securities allotted or transferred by an employer and requires valuation upon exercise of the option. An unexercised option is only a right to subscribe for shares; where no option is exercised and no shares are allotted, no specified security arises and no taxable perquisite can be valued. The right is a capital asset, and its repurchase is a transfer. Form 16, TDS and indicative tax statements cannot determine liability contrary to law.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4819 
Join Channel 
