ESOP

ESOP- Understanding Types & its Tax Impact

Income Tax - Explore the world of Employee Stock Ownership Plans (ESOPs) – types, taxation, and benefits. Learn about ESOS, ESPP, RSUs, RSAs, SARs, and Phantom Stock Plans in this comprehensive guide....

ESOPS V/s Sweat Equity – The Need and Differences

Income Tax - Learn about ESOPs and Sweat Equity, employee benefit plans designed to incentivize employees and enhance company performance. Understand their differences, eligibility, benefits, and more....

Understanding ESOPs: Pros and Cons

Income Tax - Explore Employee Stock Ownership Plans (ESOPs) and weigh the pros and cons. Learn about tax implications, benefits, and potential challenges for companies and employees....

Taxation of Employee Stock Option Plan (ESOP)

Income Tax - Learn about ESOP taxation, perquisites, capital gains, and benefits for employees in eligible start-ups. Understand tax implications of Employee Stock Option Plans....

Sweat Equity Shares: Evolution, Definition, Legal Framework, Pros & Cons

Income Tax - Explore concept of sweat equity shares, their legal framework under Companies Act, 2013, and advantages and disadvantages of using them as a form of compensation in your business....

Register for Live Webinar: Advance insights into Share based Payments Taxation

Income Tax - Delve into complex tax implications of ESOPs, Sweat Equity, CSOPs, Phantom Shares, and Stock Appreciation Rights in our live webinar. Join CA Darshak Shah for expert analysis and valuable insights...

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

Income Tax - 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. ...

ESOP Expenditure Allowed as Revenue Expenditure; Section 14A Disallowance Cannot Exceed Exempt Income;

DCIT Vs Dhani Services Ltd. (ITAT Mumbai) - DCIT vs. Dhani Services Ltd.: ITAT Mumbai upholds the deletion of disallowance under Section 14A of the Income Tax Act, along with ESOP expenditure....

TP adjustment deleted as ALP of ESOP expenses cannot be taken as NIL

Booking.Com India Support & Marketing Services Pvt Ltd Vs Booking.Com India Support & Marketing Services Pvt Ltd Vs DCIT (ITAT Mumbai) - ITAT Mumbai held that TP adjustment in respect of international transaction of reimbursement of Employee Stock Option Plan (ESOP) Expenses deleted as Arm’s Length Price (ALP) of ESOP expenses cannot be taken as NIL....

Employee Stock Option Expense Disallowance Unsustainable as it is revenue in nature

DCIT Vs Cleartrip Private Limited (ITAT Mumbai) - ITAT Mumbai held that disallowance of employee stock option expenses alleging it to be capital expenditure is unsustainable in law in as much as such expenditure are revenue in nature and hence allowable....

Expenditure towards ESOP is allowable deduction u/s 37

Northern Operating Services Private Limited Vs JCIT (ITAT Bangalore) - ITAT Bangalore held that expenditure towards Employees Stock Option Plan (ESOP) is allowable deduction u/s 37 of the Income Tax Act....

Profit margin forgone by assessee could not be held as expenditure for creating intangible or goodwill

Flipkart India Private Limited Vs ACIT (ITAT Bangalore) - The profit margin forgone by assessee could not be held to be expenditure in creating intangible or goodwill as there was no expenditure incurred by assessee except those that were set out in the profit and loss account and disallowing such expenditure by AO and consequently arriving at a positive t...

MCA Imposes Penalty for Non-Disclosure of ESOP in Explanatory Statement

Order No. ROC(M)/CMCMJN/ADJ-ORDER/5316 To 5318 RD-56 - (17/11/2023) - The Ministry of Corporate Affairs penalizes WURKNET PRIVATE LIMITED for violating Companies Act, 2013 by not disclosing ESOP details. Analysis, implications, and order details...

Penalty imposed for not taking approval of shareholders for ESOP exceeding 1% of issued capital

F.NO.ROC/CHN/Guvi Geek/ADJ Order/S.62(1)(b)/2023 - (09/02/2023) - Company at its Board Meeting convened on 05.04.2021 unanimously accorded its approval for grant of 327 options under the Scheme to identified employees during the Financial Year-2021-2022 which exceeds 1% of the issued capital of the company....

ESOP can be granted by company to Doctors exclusively employed with subsidiary

SEBI/HO/CFD/PoD-2/0W/P/2022/53220/1 - (19/10/2022) - Q. Upon listing of the Company, will it be permissible, as per the SEBI SBEB & SE Regulations, for stock options to be granted under the ESOP Plan 2013 to the doctors who are proposed to be engaged as Eligible Employees. i. Regulation 2(1)(i)(i) of the Securities and Exchange Board of India (Sha...

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...

Recent Posts in "ESOP"

ESOP- Understanding Types & its Tax Impact

Explore the world of Employee Stock Ownership Plans (ESOPs) – types, taxation, and benefits. Learn about ESOS, ESPP, RSUs, RSAs, SARs, and Phantom Stock Plans in this comprehensive guide....

Posted Under: Income Tax |

ESOPS V/s Sweat Equity – The Need and Differences

Learn about ESOPs and Sweat Equity, employee benefit plans designed to incentivize employees and enhance company performance. Understand their differences, eligibility, benefits, and more....

Posted Under: Income Tax |

Register for Live Webinar: Advance insights into Share based Payments Taxation

Delve into complex tax implications of ESOPs, Sweat Equity, CSOPs, Phantom Shares, and Stock Appreciation Rights in our live webinar. Join CA Darshak Shah for expert analysis and valuable insights...

Posted Under: Income Tax | ,

Understanding ESOPs: Pros and Cons

Explore Employee Stock Ownership Plans (ESOPs) and weigh the pros and cons. Learn about tax implications, benefits, and potential challenges for companies and employees....

Posted Under: Income Tax |

MCA Imposes Penalty for Non-Disclosure of ESOP in Explanatory Statement

Order No. ROC(M)/CMCMJN/ADJ-ORDER/5316 To 5318 RD-56 17/11/2023

The Ministry of Corporate Affairs penalizes WURKNET PRIVATE LIMITED for violating Companies Act, 2013 by not disclosing ESOP details. Analysis, implications, and order details...

ESOP Expenditure Allowed as Revenue Expenditure; Section 14A Disallowance Cannot Exceed Exempt Income;

DCIT Vs Dhani Services Ltd. (ITAT Mumbai)

DCIT vs. Dhani Services Ltd.: ITAT Mumbai upholds the deletion of disallowance under Section 14A of the Income Tax Act, along with ESOP expenditure....

Taxation of Employee Stock Option Plan (ESOP)

Learn about ESOP taxation, perquisites, capital gains, and benefits for employees in eligible start-ups. Understand tax implications of Employee Stock Option Plans....

Posted Under: Income Tax | ,

TP adjustment deleted as ALP of ESOP expenses cannot be taken as NIL

Booking.Com India Support & Marketing Services Pvt Ltd Vs Booking.Com India Support & Marketing Services Pvt Ltd Vs DCIT (ITAT Mumbai)

ITAT Mumbai held that TP adjustment in respect of international transaction of reimbursement of Employee Stock Option Plan (ESOP) Expenses deleted as Arm’s Length Price (ALP) of ESOP expenses cannot be taken as NIL....

Employee Stock Option Expense Disallowance Unsustainable as it is revenue in nature

DCIT Vs Cleartrip Private Limited (ITAT Mumbai)

ITAT Mumbai held that disallowance of employee stock option expenses alleging it to be capital expenditure is unsustainable in law in as much as such expenditure are revenue in nature and hence allowable....

Sweat Equity Shares: Evolution, Definition, Legal Framework, Pros & Cons

Explore concept of sweat equity shares, their legal framework under Companies Act, 2013, and advantages and disadvantages of using them as a form of compensation in your business....

Posted Under: Income Tax |

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