https://www.taxtmi.com/caselaws?id=756812 The Madras HC rejected a petition seeking nil TDS certificate u/s 197 for compensation received for diminution in ESOP value. The court held that compensation received by an employee for ESOPs at USD 43.67 per option constitutes a perquisite taxable under salaries head, not a capital receipt. Since the petitioner made no payments toward ESOPs and retained them after receiving compensation, the entire receipt qualified as a perquisite liable to TDS. The court distinguished the case from capital gains provisions and rejected the Delhi HC precedent in Sanjay Baweja, affirming denial of the nil deduction certificate despite flawed reasoning in the original order. en-us Wed, 31 Jul 2024 00:00:00 +0530 Fri, 09 Aug 2024 10:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756812 The Madras HC rejected a petition seeking nil TDS certificate u/s 197 for compensation received for diminution in ESOP value. The court held that compensation received by an employee for ESOPs at USD 43.67 per option constitutes a perquisite taxable under salaries head, not a capital receipt. Since the petitioner made no payments toward ESOPs and retained them after receiving compensation, the entire receipt qualified as a perquisite liable to TDS. The court distinguished the case from capital gains provisions and rejected the Delhi HC precedent in Sanjay Baweja, affirming denial of the nil deduction certificate despite flawed reasoning in the original order. Case-Laws Income Tax Wed, 31 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756812