Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT RATES :: empanelment :: list of goods taxed at 4% :: form 3cd :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: ACCOUNTING STANDARDS :: VAT Audit :: TDS
 
 
News Headlines »
 Filing of online return for 4th quarter of 2016-17 — extension of period thereof
 CBDT simplifies ITR filing process from FY18
 Govt extends service tax return filing date to April 30
 No move to tax farm income, clarifies Arun Jaitley
 New board for indirect taxes to become operational from June 1
  9 changes that came into effect from April 1
 First time filing income tax? Here's all you need to know about Form 16 and Form 26AS
 New Opening Financial Controller Chartered Accountant (Manufacturing Plant) A Leading Company
 Income Tax Filing 2017: All you want to know about the single page ITR form SAHAJ
 How to benefit from investments in tax saving mutual funds
 60 per cent of income tax notices on fishy cash deposits returned

Esops: FM likely to stick to Plan A and levy FBT
March, 19th 2007

The finance ministry may finally place the burden of employee stock option plans (Esops) on employers as part of the fringe benefit tax (FBT) package, instead of on employees as demanded by various industry bodies. A final decision will be taken in the amendments to the Finance Bill, to be tabled in Parliament after the recess.

The ministry feels that considering Esops a perquisite and taxing employees accordingly would be very difficult to achieve. The employers will have the option to pass the tax liability on to employees by charging it to their salaries.

Finance minister P Chidambaram introduced FBT on Esops as part of Budget 2007-08. Under the proposal, the difference in the market value of shares given under Esops on the date of exercising the option and the price that is paid for the shares would be treated as a capital gain. If the government considers the gain as a fringe benefit extended by companies to their employees, companies will pay 33.99% tax.

Tax experts, however, are of the view that Esops should not be considered a fringe benefit. Amitabh Singh, tax partner, Ernst & Young, said, Esops should be considered a perquisite and the employee should be taxed for it. It should be in proportion to his salary and the balance can be put under the capital gains tax.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software Development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions