Flipkart Employee’s Win Before Karnataka HC: Stock Option Compensation Not Taxable

Manjeet Singh Chawla Vs Deputy Commissioner of TDS (Karnataka High Court) Most people might have binge watched new web series on ‘TRUST is RARE’ — I binged a 180-pager tax case this week. Same drama with fewer commercial breaks. But beyond the sheer length, the Manjeet Singh Chawla ruling by the Karnataka High Court provides crucial clarity on the taxability of compensation paid for diminution in value of stock option. 1. Background and Facts of the Case: The Petitioner, Manjeet Singh Chawla, an Indian citizen and employee of Flipkart Internet Private Limited (FIPL), approache...