Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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: ACCOUNTING STANDARD :: empanelment :: cpt :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: ACCOUNTING STANDARDS :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: VAT RATES
News Headlines »
 How to file income tax returns online without having Form 16 in 10 simple steps
 Deadline For Filing Income Tax Return (ITR) Is Just 11 Days Away: 10 Latest Details To Know
  10 incomes you need not pay any tax on
 How To File Income Tax Returns In Three Steps By March 31, 2018
 10 things about income tax every taxpayer should know
 What to do if your TDS is not deposited with the government
 What if you forget to verify your Income Tax return?
 TDS on rent and other tax tasks to complete before March 31
 5 income tax changes which will come into effect from April 1, 2018
 Why you shouldn't be a last-minute tax filer
 How to calculate income tax for this assessment year on Moneycontrol

Watchout when to sell your stock option to avoid higher taxes
September, 01st 2008

You could end up paying a higher tax on selling your stock option granted by the employer by miscalculating the duration of holding of these shares if you ignore a recent tribunal order, clarifying on such calculation.

Dismissing the appeal of a professional who was given stocks by his US-based employer, the tribunal said that the duration of holding the company stocks will be calculated from the date when the employee has the right to excercise the stock option, that is a right on the shares to purchase them or sell them which could be later than date when the stock option was granted.

Clarifying on the calculation of the duration, the Bangalore bench of Income Tax Appellate Tribunal said, " till the shares are allotted, an assessee is not a subscriber of the shares of the company and is not considered a member therefore, he could not have trasnsferred any shares prior to the date on which he became a member".

The employee of the US-based software company Winphoria Networks had been taxed at the rate of 30 per cent as the duration of holding the stocks by him was less than 12 months. As per the tax laws, holding a stock option given as an option for a period of less than 12 months attracts a tax rate of 30 per cent whereas holding shares for a period of more than 12 months could reduce the tax burden by 10 per cent.

Besides, the bone of contention between the employer and the tax officials was that the employer considered holding the shares from the date it was vested on him that is the day when the option was granted, while the Tax department took into account the the period of holding from the day the assessee became the shareholder or actually purchased the shares.

The US-based software company Winphoria Networks in this case had announced an Incentive Stock Option scheme for Winphoria India employees through which the assessee was granted the right to purchase 1.25 lakh shares of the company but could excercise the option or purchase of only 25 per cent shares at that time. The employee could own the rest of the shares after a year and that too only 6.25 per cent of the total shares in each quarter as per the agreement between the employer and the company.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Internet Marketing Website Marketing Internet Promotion Internet Marketing India Website Marketing India Internet Promotion India Internet Marketing Consultancy Website Marketing Consulta

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