Service of notice and contractual debt acknowledgment preserved insolvency admission against a corporate guarantor despite limitation and natural just...
Original works exemption excludes standalone boulder transportation, leaving subcontracted railway-project transport services subject to service tax l...
Annual production capacity determinations excluding stenter galleries support refunds for unconstitutional excise levies without an unjust-enrichment ...
Vicarious liability for cheque dishonour requires specific allegations of responsibility and cheque signatory; generic director allegations cannot sus...
IT Resilience Index requires market infrastructure institutions to automate resilience scoring, early warnings, and continuous service-delivery monito...
The HC allowed the petitioner's writ petition seeking a Nil Tax Deduction Certificate under Section 197 for compensation received due to diminution in value of Flipkart Stock Options Plan (FSOP). The petitioner, an employee of an Indian subsidiary, received one-time compensatory payment without exercising stock options or receiving share allotment. The Court held that FSOPs become taxable only when options are exercised (as perquisites under Section 17(2)(vi)) or when allotted shares are sold (as capital gains under Section 45). Since neither event occurred, the voluntary compensatory payment constituted a capital receipt not chargeable under any income head. Following precedent in similar Flipkart employee cases, the Court quashed the rejection order and directed respondents to issue the Nil Tax Deduction Certificate within six weeks.
The HC allowed the petitioner's writ petition seeking a Nil Tax Deduction Certificate under Section 197 for compensation received due to diminution in value of Flipkart Stock Options Plan (FSOP). The petitioner, an employee of an Indian subsidiary, received one-time compensatory payment without exercising stock options or receiving share allotment. The Court held that FSOPs become taxable only when options are exercised (as perquisites under Section 17(2)(vi)) or when allotted shares are sold (as capital gains under Section 45). Since neither event occurred, the voluntary compensatory payment constituted a capital receipt not chargeable under any income head. Following precedent in similar Flipkart employee cases, the Court quashed the rejection order and directed respondents to issue the Nil Tax Deduction Certificate within six weeks.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4828 
Join Channel 
