11 June 2011
U/s 17 share or any securities received from an employer free of cost is taxable as a perquisite, the value of such perquisite is market value of the security but, U/s 55 share or securities cost of acquisition is taken to be NIL which is acquired free of cost(Bonus share, renouncement of right share, etc). Is it not just like a double taxation? Amount on which tax is paid as tax on perquisite under income head salary why should not be treated as cost of acquisition?
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