« Top Headlines » Open DEMAT Account in 24 hrs  How to Change Current Period in Tally Prime Step-by-Step Guide for Users  Global Payroll Management with Tally Prime: How International Businesses Use It Beyond India  How to Manage B2B HSN Codes in Tally Prime: A Complete Guide for Businesses  How to Check Business Revenue in Tally Prime: A Complete Step-by-Step Guide  MSME Payment Rule in Tally Prime: Understanding the Law and Its Impact on Businesses in 2025 The MSME (Micro, Small and Medium Enterprises) Payment Rule is a legal framework introduced under th  Multipurpose Empanelment Form (MEF) 2025 26 Meaning, Purpose, and How to Manage It in Tally Prime  GST Appellate Tribunal (GSTAT) Structure, Powers, and Its Relevance in Tally Prime Implementation  How Tally Prime Supports the Real Estate & Construction Industry in India  Comparison Between Tally Prime 6.1 and Tally Prime 6.2  How Tally Prime Renewal Helps Save My Data  Where to Buy Tally Prime 7.0 at the Best Rates Possible «  Govt considering Factories Act amendment... 16 years into reforms, India retains one of the worst tax... » Govt clears the air on FBT calculation November, 23rd 2007 Government on Tuesday notified the rules to determine the fair market value of shares given by companies to their employees for calculating the Fringe Benefit Tax (FBT) to be paid by the employers. Clearing the air on taxation of Employees Stock Option Scheme (ESOP), the government said FBT will have to be paid by employers on the difference between Fair Market Value (FMV) of shares and the price at which they are given to employees. According to the notification, FMV of the ESOP for listed companies would be the average of opening and closing prices of shares on the stock exchange on the date when the employee becomes eligible for the option. If shares are traded on more than one stock exchange, FMV will be the average of the opening and closing prices of the shares on the exchange which reports highest trading volume, the notification said. However, in case shares are not traded on the specified day, the share price on the day closest to the vesting of option would be considered for the calculation of FMV. In case of unlisted companies, FMV will be determined by merchant bankers on the date of vesting of option, that is the date on which the employee is given the right to apply for the shares under ESOP, the notification said. The incidence of FBT on ESOPs will be around 34 per cent of the taxable value for domestic companies and 42 per cent for foreign companies.