https://www.taxtmi.com/manuals?id=1291 Employee stock options and sweat equity shares are taxable as a perquisite when specified securities or sweat equity shares are allotted or transferred by an employer or former employer free of cost or at a concessional rate. Fair market value is determined on the exercise date by stock exchange prices for listed equity shares, by merchant banker valuation for unlisted shares, and by merchant banker valuation for specified securities other than equity shares. The perquisite is taxed in the year of allotment, disclosure is required in the return, later sale is taxed as capital gains, and non-compliance may attract interest, penalty, and prosecution. en-us Tue, 03 Nov 2015 16:53:00 +0530 Mon, 06 Apr 2026 15:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/manuals?id=1291 Employee stock options and sweat equity shares are taxable as a perquisite when specified securities or sweat equity shares are allotted or transferred by an employer or former employer free of cost or at a concessional rate. Fair market value is determined on the exercise date by stock exchange prices for listed equity shares, by merchant banker valuation for unlisted shares, and by merchant banker valuation for specified securities other than equity shares. The perquisite is taxed in the year of allotment, disclosure is required in the return, later sale is taxed as capital gains, and non-compliance may attract interest, penalty, and prosecution. Manuals Income Tax Tue, 03 Nov 2015 16:53:00 +0530 https://www.taxtmi.com/manuals?id=1291