Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: list of goods taxed at 4% :: due date for vat payment :: VAT Audit :: TDS :: form 3cd :: Central Excise rule to resale the machines to a new company :: VAT RATES :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: empanelment
 
 
ę News Headlines »
 How to save income tax? Best tips for young earners
 Forgot to verify your income tax return? Here's help
 Notification of Government e-Marketplace (GeM) under section 138 of the Income-tax Act
 Income tax returns can be filed even if you missed deadline
 What is the difference between a tax return and a tax refund?
 Improving tax compliance in India
 How to invest in the new LTCG tax regime
 5 Tips to help you save tax
 Why to file income tax return?
  Income Tax For Individuals ‚Äď Assessment Year 2019‚Äď20
 RBI mentions 5 tax implications on investments and savings

Its final, North Block to bring Esops in the FBT ambit
May, 01st 2007

There is unlikely to be much change in the finance ministrys Budget proposal to tax employee stock options (Esops).

According to sources, North Block is likely to stick to its original plan to bring Esops under fringe benefit tax (FBT), the incidence of which is likely to lay with the employer. Employers would have to pay 33.99% tax, but would have the option of passing on the tax liability to employees by including the charges in their salaries, sources said.
 
Also in keeping with the Budget proposal, employees would attract FBT only at the time of exercising the option. The tax will, however, be applicable from April 1, 2007, sources said.

The valuation norms for listed companies will be based on the rules of the Securities and Exchange Board of India (Sebi). For unlisted companies, the Central Board of Direct Taxes is likely to prepare a separate list of rules, sources added.

Finance minister P Chidambaram introduced FBT on Esops as part of Budget 2007-08, which would leave the burden of this tax on companies that issue stock options. Under the proposal, the difference in market value of shares, given under Esops, on the date of exercising the option and the price paid for the shares, would be treated as a gain.

Following the Budget announcement, the finance ministry has been evaluating various models for taxing Esops. It is likely to come up during discussion of the Finance Bill on Thursday. In their post-Budget representation, companies had suggested that the government should consider Esops as perquisites and tax employees at the time of their exercise.

They had also suggested that Esop taxation proposal should be prospective, i.e., tax options granted to employees only after March 1, 2007 should be considered for the purpose of taxation.

No sops to employees
Employers would have to pay 33.99% tax, but would have the option of passing on the tax liability to employees
Employees would draw FBT only at the time of exercising the option
The valuation norms for listed companies will be based on the rules of the Securities and Exchange Board of India

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System development CMS development Content Management Solutions CMS Solutions Content Management Services CMS Services CMS Software

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