Company Law : Understand why independent directors are prohibited from receiving ESOPs under Indian law, while profit-based commissions are perm...
Company Law : Independent Directors cannot acquire sweat equity shares or ESOPs due to restrictions under the Companies Act and SEBI regulations...
Income Tax : Learn about Employee Stock Option Schemes (ESOPs), their lifecycle, SEBI regulations, and tax calculations under the Finance Act 2...
Income Tax : Understand the taxation on ESOPs, including when options are exercised and shares are sold, and related TDS provisions for employe...
Corporate Law : Explore the differences between the ESOP Trust route and Direct route for employee stock options, including advantages and disadva...
Income Tax : From April 1, 2025, Section 47 will exclude transfers of capital assets under gifts or wills from capital gains tax, with specific...
Income Tax : Delve into complex tax implications of ESOPs, Sweat Equity, CSOPs, Phantom Shares, and Stock Appreciation Rights in our live webin...
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 differenc...
Income Tax : ITAT Mumbai held that the Employee Stock Option Plans [ESOP] expenses should not be regarded contingent or notional and it should ...
Income Tax : The Karnataka High Court, upholding the ITAT's order, reiterated that discounts on the issuance of ESOPs are allowable deductions ...
Income Tax : Madras High Court held that compensation paid to ESOP holders qualifies as perquisite and hence taxable under the head ‘salaryâ€...
Income Tax : Tribunal upholds CIT(A) decisions in DCIT Vs Astral Limited case, offering key insights on TP adjustments, ESOP expenses, and Sect...
Income Tax : In the case of Sanjay Baweja Vs DCIT, the Delhi High Court ruled that one-time payments in lieu of ESOPs do not constitute salary ...
Goods and Services Tax : CGST Circular 213/07/2024 clarifies GST applicability on ESOP/ESPP/RSU provided by foreign holding companies to Indian subsidiarie...
Company Law : The Ministry of Corporate Affairs penalizes WURKNET PRIVATE LIMITED for violating Companies Act, 2013 by not disclosing ESOP detai...
Company Law : Company at its Board Meeting convened on 05.04.2021 unanimously accorded its approval for grant of 327 options under the Scheme to...
SEBI : Q. Upon listing of the Company, will it be permissible, as per the SEBI SBEB & SE Regulations, for stock options to be granted...
SEBI : As per Regulation 9(2) of the SEBI (Share Based Employee Benefits) Regulations, 2014 (SBEB Regulations) Â the company may permit t...
Learn about ESOPs and how they can benefit both employees and organizations. Discover the advantages of employee stock ownership plans in attracting and retaining talent.
Understand the provisions and procedures of ESOP (Employee Stock Option Plan) in this informative blog post. Learn how companies use ESOP to give ownership interest to their employees.
Unlocking the impact of qualitative valuation drivers on business value: Learn how factors like a diverse management team and company culture can significantly affect valuation.
Explore the intricacies of ESOP (Employee Stock Option Plan) under the Companies Act’ 2013. From crucial definitions like grant, vesting, and option, to recognizing goods or services in share-based transactions, learn the classification of employee share-based plans and the meticulous measurement of fair value. Dive into examples, classifications, and valuation techniques.
1. Under which Head of Income ESOP is taxable. ESOP is taxable under income from Salary under income tax act, 1961. ESOP is perquisite according to section 17 of income tax act, 1961. According to section 17(2)(vi) of Income Tax Act, 1961 “the value of any specified security or sweat equity shares allotted or transferred, […]
Startups are increasingly announcing ESOP buybacks to retain and hire top talent amid the growing competitive market. Recently, Cars 24 announced a Buyback of ESOPs worth Rs. 75 Crores. There are many more companies announcing such buybacks. But the real question is what is the Buyback of ESOP? How does it work? Legally and Practically. […]
ESOP stands for Employee Stock Option Plan. Under ESOP, the employer offers shares of the company to the employees under the manner in which the option will be implemented and exercised. ESOPs can be offered for various reasons to employees such as incentives, in exchange for know-how or as an option to pay low salaries […]
In the year 2021, when a record $36 billion was invested in Indian startups, 35 non-founder top management had joined the Rs 100-crore inventory options club, creating the possibility for wealth accumulation that employee stock options provide. Â According to top-tier entrepreneurs, the expanding membership also indicates that Esops have gone mainstream in India and are […]
Introduction to ESOP ESOPs have been a significant component of the compensation for the employees of start-ups, as it allows the founders and start-ups to employ highly talented employees at a relatively low salary amount with balance being made up via ESOPs. Currently ESOPs are taxed as perquisites under section 17(2) of the Act read […]
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 […]
