https://www.taxtmi.com/caselaws?id=470809 ESOP discount is treated as employee compensation incurred to secure and retain employees' services, rather than as a capital outlay or a contingent, notional claim. The liability accrues progressively as employees render services during the vesting period and is therefore deductible as an ascertained business expenditure under Section 37(1) of the Income-tax Act, 1961. The deduction should be claimed on a pro-rata basis over the vesting period, with reversals for options that lapse or remain unvested and appropriate adjustment when options are exercised. en-us Wed, 23 Feb 2022 00:00:00 +0530 Mon, 10 Aug 2026 18:06:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470809 ESOP discount is treated as employee compensation incurred to secure and retain employees' services, rather than as a capital outlay or a contingent, notional claim. The liability accrues progressively as employees render services during the vesting period and is therefore deductible as an ascertained business expenditure under Section 37(1) of the Income-tax Act, 1961. The deduction should be claimed on a pro-rata basis over the vesting period, with reversals for options that lapse or remain unvested and appropriate adjustment when options are exercised. Case-Laws Income Tax Wed, 23 Feb 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470809