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Voluntary Compensation in lieu of ESOP Not Part of Salary: Delhi HC in Flipkart-Phonepe Case
Case Law Details
- Case Name
- Sanjay Baweja Vs DCIT (Delhi High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Delhi High Court
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Sanjay Baweja Vs DCIT (Delhi High Court)
In a recent judgment, the Delhi High Court provided clarity on the tax treatment of one-time voluntary payments made in lieu of Employee Stock Option Plans (ESOPs). The case, titled Sanjay Baweja Vs DCIT, involved an ex-employee of Flipkart Internet Private Limited (FIPL) challenging the tax authority’s decision to treat a compensation payment from the employer’s foreign parent company as a part of his salary under the Income Tax Act, 1961.
Background:
Sanjay Baweja, the petitioner, was an employee of Flipkart Internet Priva...
Author Info
I also wanted to understand.
Has anyone able to conclude under which section we can report the earning paid out.
please share
Hi Team,
Thank you for this article. I have similar situation where I am am ex employee of Flipkart. I received voluntary payment from Flipkart in lieu of shares vested to me.
TDS of 30% was applied to the payout.
Flipkart has not provided any Form 16 for the payment made.
I wanted to understand how do I claim refund for the tax deducted.
Hi Sandeep,
What is the taxability of this receipt in view of section 56(2)(xi) of IT Act, 1961. This clause was inserted in 2018 budget.