Case Law Details
Case Name : Bomi S. Billimoria Vs. ACIT (ITAT Mumbai)
Related Assessment Year : 1993-94
Courts :
All ITAT ITAT Mumbai
The assessee, an employee of Johnson & Johnson (“J&J”) India, received from J&J, USA, on 12.7.1989 a “cashless” option to buy 2500 shares at the then prevailing market price of $ 57.88 per share. The options were exercisable in installments over 10 years starting 11.7.1991. On 13.8.1992 (AY 1993-94), the assessee ‘sold’ the options and made a gain of Rs. 5,44,925. The AO held that the said gain was assessable in AY 1993-94 as either salary, short-term capital gain or speculation profit. On appeal, the CIT (A) held that the ‘shares’ obtained under the ESOP were a cap...
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Is cashless esop are non taxable till date or any other provision after 2010?
can some one suggest?
This should be a landmark case..Can anyone clarify what this means for ESOPs granted by Parent company based in US and stocks listed in US StockExchange to Indian employees of the Indian subsidiary of the company ?
After FBT abolished my company’s interpretation is that ESOP benefits are classified as Perks now and the company is still liable to cut TDS at the rate of 30% on any ESOPs exercised.
In above case…court says ESOPs cannot be taxed but here the companies are treating it as a perk n taxing it at the highest slab rate possible ??
Pls clarify.