« 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 «  I-T Dept not to accept TDS returns without PAN details... Is your home a tax trap?... » 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.