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An employee sells shares that were allotted to him under an employee stock option plan and taxed as a…

Section 73(1), Table item 4, adopts the "Fair market value taken into account" for the perquisite. Section 17(4)(h) values it on exercise, so the contractual exercise price…

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An employee sells shares that were allotted to him under an employee stock option plan and taxed as a perquisite under section 17(1)(d) of the Income-tax Act, 2025. In computing his capital gains, the cost of acquisition of the shares is

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Correct answer C

Section 73(1), Table item 4, adopts the "Fair market value taken into account" for the perquisite. Section 17(4)(h) values it on exercise, so the contractual exercise price alone is not the capital-gains cost basis.

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