« Top Headlines » Open DEMAT Account in 24 hrs  Mock Test Papers Series - I & II for Students appearing in CA Foundation January 2027 Examination.  Income Tax Rules 2026: CBDT Introduces Revised Form 161 for Penalty Waiver, Clarifies Misreporting Categories and Taxpayer Relief  ITR Filing and Income Tax Audit Deadline Extended: 5 Critical Things Taxpayers Must Know  Filing Belated ITR for AY 2026-27? Know Which Losses You Can Carry Forward and Which You May Lose  CBDT Extends Tax Audit Report Deadline to October 21, ITR Filing Last Date to November 21 for AY 2026-27  CBDT Extends AY 2026-27 ITR Filing Deadline for Tax-Audit Cases: New Dates and Key Compliance Details  Foreign Assets Missing From Your ITR? Income Tax Department Opens One-Time Disclosure Window  Tax Audit Deadline September 30: Why AIS, TDS and GST Figures May Not Match Your ITR and What Taxpayers Should Do  Tax audit deadline September 30: Common mistakes taxpayers should avoid  Your ITR says ‘verified’, but the refund hasn’t arrived? 5 reasons why your money could be stuck  Missed the ITR Deadline but TDS Refund Is Due? Here’s How You Can Still Claim Your Money «  Finmin opposed to extending tax sops to EOUs, STPIs beyond... Trusts Act likely to be amended... » No FBT on nominated directors' Esops December, 25th 2007 The finance ministry has decided to exempt companies from paying fringe benefit tax on employee stock options issued to non-executive directors. This comes even as the debate on whether non-executive or nominated directors can exercise their stock options is yet to be settled. It may be recalled that the controversy broke out when two Life Insurance Corporation nominees on the Larsen and Toubro board decided to exercise their stock option in March, soon after FBT on employee stock option plan was proposed in the Budget and made applicable from April 1, 2007. The government has now clarified that companies who give stock option plans to non-executive directors will not have to pay fringe benefit tax (FBT) on them. According to the Central Board of Direct Taxes, benefit arising out of Esop issued to non-employees will not be liable to FBT. However, in such cases, the taxability of such benefits in the hands of the non-employees will be determined in accordance with the existing law, it says. Further, the circular has given a relief to those companies which purchase securities from the market and given them to employees. The expenditure incurred by a company on purchasing shares would be allowable as a deduction in computing its taxable income. A large number of listed companies opt for this route. But, the companies allotting shares from their own share capital will not be able to claim it as a deduction, since no expenditure has been incurred. Subsequently, if the employer recovers the FBT from the employee, it will not be treated as his income.