ESOP

Understanding the Taxability of ESOP Gains

Company Law - According to Section 2(37) of companies Act, 2013, Employees stock option schemes  is an option given to the directors, employees or officers of the company or its holding and subsidiary company, the right to purchase or benefits or subscribe for the shares of the company at the pre determined price for a future dates.  Therefore [&hell...

Read More

Taxability of Employee Stock Option Plan in the hands of Employees

Company Law - Employee Stock Ownership Plan enables an employee to establish ownership in the company by obtaining its shares. Earlier, such plans were created by top companies for their employees at managerial level to incentivise them, and to develop a sense of ownership and belongingness in the organisation....

Read More

Differences: ESOP and Sweat Equity Shares

Company Law - Employees Stock Option Scheme (ESOP) and Sweat Equity Shares are two methods of issuing shares by a company to its employees and also can increase the share capital of the Company. Both ESOP and Sweat Equity Shares are issued as per the provisions of the Companies Act, 2013 and Companies (Share Capital and Debentures) Rules, […]...

Read More

ESOP Checklist and Procedure

Company Law - This Employee Stock Option Scheme (ESOP) checklist & Procedure is for Unlisted Companies & for Private Companies only. This checklist helps Professional & Corporate Users to gain knowledge about the ESOP. (Section 62(1)(b)) 1. Drafting of ESOP scheme. 2. Alter the Article of Association, if AOA is silent on the issue of share ...

Read More

Taxation of ESOP Expenditure

Company Law - Tax Effect of ESOP Expenditure Employee Stock Option Plan (ESOP) is a scheme where a company issues its share to its employees at price lower than its market price with a condition that employees should be in employment or fulfill conditions attached to the scheme. An ESOP is an employee benefit plan that gives employees […]...

Read More

Tax on ESOPs should be only at the point of sale of shares by employees

Company Law - The section states that ESOPs issued free of cost or at concessional rates will be taxed on the date of exercise on the difference between the fair market value and the amount  actually paid by the employee. ...

Read More

Tax on gain on sale of ESOP in USA given to Indian employee by Google Inc USA- HC remit matter back to AO

Dr. S. Muthian Vs ACIT (Madras High Court) - (i) Whether the gain on sale of stock options in USA that were given to the Indian employee by M/s.Google Inc., USA amounts to perquisites taxable under the Income Tax Act, 1961 or not?; (ii) Whether the amounts shown in Form-16 as Tax Deducted at Source on such perquisites would be the exclusive...

Read More

Tax Payable on ESOP to Dubai Based taxpayer for services rendered in India

Unnikrishnan V S Vs ITO (ITAT Mumbai) - In case the assessee is to get ESOP benefits in respect of his service in U.A.E. and he exercises these options at a later point of time, say after returning to India and ceasing to be a non-resident, he will still have the treaty protection of that income under article 15(1). This principle, how...

Read More

Expense on issue of shares under ESOP allowable

Pr. CIT Vs Lemon Tree Hotels (P) Ltd. (Delhi High Court) - Pr. CIT Vs Lemon Tree Hotels (P) Ltd. (Delhi High Court) The question of law urged with respect to expenditure claimed towards case of Employee Stock Ownership Plan (ESOP) has been subject matter of previous orders of this Court in respect of the present assessee. For A.Y. 2008-09 in ITA 107/2017 (C...

Read More

Employees Stock Option Scheme Compensation expense allowable

DCIT Vs M/s. Info Edge India Ltd. (ITAT Delhi) - DCIT Vs M/s. Info Edge India Ltd. (ITAT Delhi) From the order of ld. CIT(A), it is clear that the ld. CIT(A) has relied on various decisions and has per the decisions relied by the ld. CIT(A), the ESOP has been treated as Revenue expenditure. The Revenue did not bring any contrary decision against t...

Read More

ESOPs Holding period to be from date of grant not from date of vesting

Shri. N. R. Ravikrishnan Vs ACIT (ITAT Bangalore) - Period of holding ESOP options transferred by the assessee in course of buy-back scheme of his employer was to be counted from the date of grant of ESOP option and date of vesting was not relevant as options were transferred without any exercise....

Read More

Company may permit empaneled stock brokers to fund ESOP

SEBI/HO/CFD/DCR1/OW/P/2020/0011948/1 - (20/07/2020) - As per Regulation 9(2) of the SEBI (Share Based Employee Benefits) Regulations, 2014 (SBEB Regulations)  the company may permit the empaneled stock brokers to fund the payment of exercise price which shall be adjusted against the sale proceeds of some or all the shares, subject to the provisions of...

Read More

Recent Posts in "ESOP"

Understanding the Taxability of ESOP Gains

According to Section 2(37) of companies Act, 2013, Employees stock option schemes  is an option given to the directors, employees or officers of the company or its holding and subsidiary company, the right to purchase or benefits or subscribe for the shares of the company at the pre determined price for a future dates.  Therefore [&hell...

Read More
Posted Under: Company Law |

Taxability of Employee Stock Option Plan in the hands of Employees

Employee Stock Ownership Plan enables an employee to establish ownership in the company by obtaining its shares. Earlier, such plans were created by top companies for their employees at managerial level to incentivise them, and to develop a sense of ownership and belongingness in the organisation....

Read More
Posted Under: Company Law |

Differences: ESOP and Sweat Equity Shares

Employees Stock Option Scheme (ESOP) and Sweat Equity Shares are two methods of issuing shares by a company to its employees and also can increase the share capital of the Company. Both ESOP and Sweat Equity Shares are issued as per the provisions of the Companies Act, 2013 and Companies (Share Capital and Debentures) Rules, […]...

Read More
Posted Under: Company Law |

ESOP Checklist and Procedure

This Employee Stock Option Scheme (ESOP) checklist & Procedure is for Unlisted Companies & for Private Companies only. This checklist helps Professional & Corporate Users to gain knowledge about the ESOP. (Section 62(1)(b)) 1. Drafting of ESOP scheme. 2. Alter the Article of Association, if AOA is silent on the issue of share ...

Read More
Posted Under: Company Law |

Taxation of ESOP Expenditure

Tax Effect of ESOP Expenditure Employee Stock Option Plan (ESOP) is a scheme where a company issues its share to its employees at price lower than its market price with a condition that employees should be in employment or fulfill conditions attached to the scheme. An ESOP is an employee benefit plan that gives employees […]...

Read More
Posted Under: Company Law |

Employees Stock Option Plan (‘ESOP’)

Brief outline: The ESOP refers to ‘a plan’ for the benefit of the Employees of a Company, who make the Companies operational, profit centres and socially-economically enormous, this is not limited to big known companies but is also common with the small companies; newly incorporated companies. This plan has become famous and appreciat...

Read More
Posted Under: Company Law |

ESOP- Meaning, Legal Aspects & Recognition as Start up Kit to Retain Talent

WHAT IS ESOP AND WHY IT IS RECOGNIZED AS START UP KIT TO RETAIN TALENT AS WELL AS LEGAL ASPECTS OF ESOP Employee Stock Option Scheme usually known as the Employee Stock Option Plan or Employee Stock Ownership Plan or ESOP, as its bare reading suggest that it’s an option provided to the employees of […]...

Read More
Posted Under: Company Law |

Employee Share Based Payment- Accounting & Taxability

Employee Share Based Payments, it is a payment based on price or value of shares. Share plans and share option plans are a common feature of employee remuneration, for directors, senior executives and many other employees. ESOPs are very much common among the startups where the startup gives ownership interest in the company to their [&he...

Read More
Posted Under: Company Law |

ESOP Guide For Start-Ups

INTRODUCTION ♣ ESOPs in India and globally have been used by businesses to encourage employees to buy shares and own a part of the company while aligning their performance and hard work to the same. ♣ ESOP has gained enough popularity after young start-ups struggle to attract suitable human capital. ♣ Start-ups start losing the [&he...

Read More
Posted Under: Company Law |

ITAT order on Taxability of ESOP to Dubai Based Employee of HDFC Bank

The assessee is an individual, who is an employee of HDFC Bank Limited, Mumbai, and currently on deputation to HDFC Bank Representative Office in Dubai. The status of the assessee is of the non-resident....

Read More
Posted Under: Company Law |

Browse All Categories

CA, CS, CMA (5,801)
Company Law (7,804)
Custom Duty (8,841)
DGFT (4,666)
Excise Duty (4,560)
Fema / RBI (4,897)
Finance (5,277)
Income Tax (38,938)
SEBI (4,213)
Service Tax (3,821)

Search Posts by Date

November 2021
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
2930