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Air information

Mohit Khandelwal (Tax Consultant) (30 Points)

26 August 2013

Whether exersice of ESOPs by employees are reported in AIR being right issues?

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3 Replies

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 26 August 2013

Dear Mohit Sir,

No, such transaction will not be required to be furnished in AIR...

Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com

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Mohit Khandelwal (Tax Consultant) (30 Points)
Replied 26 August 2013

I need a reasoning for this because ESOPs are treated as right issues. As per Rule 114E - A company issuing shares through a public or rights issue needs to be reported in AIR.

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 26 August 2013

Dear Mohit Sir,

I think the ESOP (being taxable perquisite in the hands of employee u/s 17(2)(vi)) shouldn't be treated like other right issue.. though the nature is as of right shares... however, it is not a kind of investment in public issue or right issue, that the Dept. requires from the person..

i think, the investment in ESOP by Employee should be differentiated from the Investment in right issue by the shareholders... for the purpose of AIR..

I stated no, keeping the above words in mind.. however, it is always best practice to confirm it from other friends... might that have a different/same view...

Best Regards,