Employee Stock Options are equity shares granted to valued employees of an organisation for fulfillment of certain milestones set by the company.
Once these shares are vested, employees can “exercise” their right over these ESOPs.
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Once exercised, ownership of equity shares gets transferred to the employee.
➡️Taxability on acquiring ownership
Since ownership of these valuable shares comes free of cost or at a nominal price, it is considered as an employment perk or a “perquisite” in taxation terminology.
Dec 2, 2022 • 7 tweets • 2 min read
What is the difference between LTCG under section 112A and 112 of the Income Tax Act, 1961?
A brief understanding:
Section 112A deals with primarily two types of assets -
âś…Listed equity shares;
âś…Equity-oriented funds (mutual funds having 65% or more equity).
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If the listed shares/ units are held for > 1 year, then gains arising on sale of such assets are long term.
Gains in excess of Rs 1 lac shall be taxable u/s 112A @ 10% without benefit of indexation.
Rebate u/s 87A not available.
Chapter VI A deductions not available.
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Jul 24, 2022 • 4 tweets • 2 min read
We urge and request the govt to extend due dates today. Delay in decision is impacting the professionals greatly. Loss of clients and mental peace with risk of making errors while filing in haste.
You are well aware how AIS, portal issues & form 16s have been delayed this year. Please do not turn your backs on us. Ease of doing business is your mantra.
Jan 10, 2022 • 5 tweets • 2 min read
Case 1: In October month, 80TTA/B was being erroneously allowed as a deduction inspite of savings interest being set off with business losses.
In January, this got corrected in the utility, thereby adding to the liability of the assessee (along with the additional 234A interest)
Case 2: Speculative losses were being set off with non-speculative gains in the month of August 2021. Now, the utility shows a tax liability after making amends.
