https://www.taxtmi.com/caselaws?id=796320 Unexercised vested employee stock options are rights to subscribe to shares and do not constitute specified securities for salary-perquisite valuation, which applies when options are exercised and shares are allotted or transferred. Where no exercise or allotment occurs, repurchase consideration does not create a taxable perquisite. The vested option is a capital asset, and its repurchase is a transfer; the resulting gain is taxable as long-term capital gains. Form 16, tax deducted at source and indicative tax treatment in the repurchase offer do not determine the employee's statutory tax liability. en-us Thu, 30 Jul 2026 00:00:00 +0530 Tue, 04 Aug 2026 08:39:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796320 Unexercised vested employee stock options are rights to subscribe to shares and do not constitute specified securities for salary-perquisite valuation, which applies when options are exercised and shares are allotted or transferred. Where no exercise or allotment occurs, repurchase consideration does not create a taxable perquisite. The vested option is a capital asset, and its repurchase is a transfer; the resulting gain is taxable as long-term capital gains. Form 16, tax deducted at source and indicative tax treatment in the repurchase offer do not determine the employee's statutory tax liability. Case-Laws Income Tax Thu, 30 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796320