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Under the Income-tax Act, 2025, when shares are allotted by an employer to an employee, free of cost or…

Section 17(1)(d) of the Income-tax Act, 2025 includes in perquisite the value of any specified security or sweat equity shares allotted or transferred by the current or…

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Under the Income-tax Act, 2025, when shares are allotted by an employer to an employee, free of cost or at a concessional rate, on exercise of an option under an employee stock option plan, the value of the shares is taxed in the employee's hands as

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Section 17(1)(d) of the Income-tax Act, 2025 includes in perquisite the value of any specified security or sweat equity shares allotted or transferred by the current or former employer free of cost or at a concessional rate, and section 16 includes perquisites in salary. Under section 17(4)(h), the value is the fair market value on the date the option is exercised, less the amount the employee paid, and it is taxed as "a perquisite chargeable under the head Salaries". This corresponds to section 17 of the repealed Income-tax Act, 1961.

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