Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Top Headlines »
Open DEMAT Account in 24 hrs
 8 reasons why old tax regime is still attractive for many taxpayers in this income tax bracket
 March 31 deadline is getting near. How to save income tax with tax loss harvesting?
 45-day MSME payment rule: Impact and details of Section 43B(h) explained
 Small savings schemes that offer tax benefits of up to Rs 1.5 lakh under section 80C
 RE-OPENING OF CORRECTION WINDOW FOR MAY 2024 CA EXAMINATIONS
 Powerful Upgrades, Tally 12+1 months renewal Plan and Connected Services for your growing Business - March 2024
 How innovative solutions can help fix the Sec 43B conundrum for MSMEs
 Income Tax dept asks many individuals to explain high value transactions of FY20-21 as Updated ITR deadline nears
 Release Notes for TallyPrime and TallyPrime Edit Log Release 4.1 | What s New!
 Deadline to file updated ITR FY20-21 ends on March 31: Details on additional tax
 4 tax-planning mistakes to avoid this season

Taxpayers may pay for I-T's delay
September, 26th 2007
Taxhounds may once again spoil the sleep of a lot of people. This time it wont be the bark or bite but their deafening silence on valuation norms for fair market value of Esop shares.

The Central Board of Direct Taxes (CBDT) is formulating the guidelines that would be used for calculating the fringe benefit tax (FBT) and short-term capital gains tax. But, in the absence of a clarification, taxpayers who exercised their option and later sold the shares will have to pay a penal interest (1% per month) on their liability.

Unlike for FBT, the date of advance payment for short-term capital gains tax on employee stock option plan (Esop) has not been extended. May 15 and September 15 were the two deadlines for advance tax payments.

While the government has provided relief to employers by extending the FBT payment deadline, first to September 15 and then to December 15, the employees, who can also be affected with respect to tax on short-term capital gains, have been ignored. I hope the government will provide similar relief to them, says Ernst&Young partner Amitabh Singh.

Short-term capital gains tax is applicable if the shares or securities are held for a year or less. It is levied at the rate of 30% if the transaction has not attracted securities transaction tax (STT). If STT has been paid, the rate is 10%. The tax rate would be 30% for employees of unlisted companies and multinationals listed outside India.

A large number of companies had asked the employees to exercise their options soon after the announcement of FBT on Esop in the Budget. Many employees sold Esop shares to take the advantage of the bull run and became liable for short-term capital gains tax.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting