https://www.taxtmi.com/caselaws?id=470802 ESOP discount represents employee compensation for services rendered during the vesting period and becomes deductible only proportionately as options vest. Granting options alone neither obliges the employer to issue shares at a discount nor crystallises a deductible liability. A deduction claimed up to the end of the financial year without regard to vesting is likewise inconsistent with the service-linked nature of the expense. Consequently, the full ESOP discount is not deductible in the year of grant, and the deduction claim was disallowed. en-us Wed, 13 Feb 2019 00:00:00 +0530 Mon, 10 Aug 2026 18:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470802 ESOP discount represents employee compensation for services rendered during the vesting period and becomes deductible only proportionately as options vest. Granting options alone neither obliges the employer to issue shares at a discount nor crystallises a deductible liability. A deduction claimed up to the end of the financial year without regard to vesting is likewise inconsistent with the service-linked nature of the expense. Consequently, the full ESOP discount is not deductible in the year of grant, and the deduction claim was disallowed. Case-Laws Income Tax Wed, 13 Feb 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470802