TaxTMI 
TaxTMI 
Taxability on ESOPS
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....axability on ESOPS<br>By: - sagar basu<br>Income Tax<br>Dated:- 29-9-2010<br><br>X company Ltd was alloted shares to its employees under ESOP scheme.At the time of allotment it was covered under FBT. ....
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....Now employees sold their shares to the company and earned lumsum amount. At present the esops amount will be taxable under perquisites as well as capital gain as FBT was abolished. Some employees reti....
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....red from service and they are associating with the company as a professional/ technical person not in co's payroll.Now the amount received by such a retired employee will be taxable under what head- s....
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....alary and capital gain or income from other sources and capital gain ! Tax incidence on salary will arise when there is employer employee relation ship between two persons. As the retired employee no....
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....t in payroll esops amount will not taxable under salary but income from other source and capital gain on sale proceeds.If any income is not taxable under any specific head the same will be taxed under....
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.... income from other sources. Reply By Sunil Agarwal as = ESOP expenses incurred by the company whether revenue expenses or capital expenses specially after the decision of ITAT in case of Ranbazy? I t....
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....hink it will be still revenue exp. as employee cost. Dated: 30-9-2010<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....