« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  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.