Govt to notify guidelines on ESOP soon
Last updated: 26 September 2007
After a delay of more than five months, the government is likely to notify within a week the guidelines for evaluating fringe benefit tax (FBT) on stock options given by companies to their employees. "Finance Minister P Chidambaram has given his approval and the guidelines on ESOPs (employee stock options) will be notified in the next four-five days," official sources said. Sources said the guidelines have been finalised and the ministry is now in the final stage of notifying them. The guidelines will give a respite to the companies, which have been waiting for the past many months to find out the manner for calculation the liability under FBT. Notably, Finance Ministry had to postpone earlier this month the last date for paying FBT on ESOPs to December 15, the date for paying the third instalment of advance tax. The Central Board of Direct Taxes (CBDT) has not so far finalised the method for determination of the fair market value. With no guidelines on this, companies have been unable to pay the tax and so the date of paying advance FBT had been postponed. They would have to club the payment of three instalments of advance FBT in December. The government had earlier postponed the date for paying the first instalment of FBT to September 15 from June 15. Chidambaram had announced in this year's budget that ESOPs would now come under the FBT net. He had said the tax would have to be paid taking into account the fair market value of the stock options, for which the CBDT would come out with guidelines
Comments
Recent News :
- GSTN Issues Waiver Scheme under Section 128A
- ICAI Announces Revised Criteria for Classification of Non-Company Entities for Applicability of Accounting Standards
- NFRA Board to Address Major Audit Standard Revisions Amid Tensions with ICAI
- GSTN Issues Advisory related to Other Territory Applications
- RBI Reports 98% of Rs 2000 Banknotes Returned Post Withdrawal Announcement
- Truecaller India Offices Face Income Tax Raids Amid Ongoing Compliance Checks
- CBIC Mandates 1-Year Deadline for Customs Fraud Inquiries
- December GST Council Meeting to Address Rate Cuts on Life and Health Insurance Premiums
- CBDT Considers Revamp of Income Tax Department Designations to Enhance Clarity and Transparency
- Tax Officers Uncover 18,000 Fake GST Firms, Detect Rs 25,000 Crore Tax Evasion
Popular News
- CBDT Extends Due Date for Audited IT Returns for AY 2024-25 to 15th Nov 2024
- GSTN Advisory: New e-Invoice Reporting Limit Set for Businesses with AATO of Rs 10 Crore and above
- GST Portal Activates Form DRC-03A for Voluntary Payment Adjustments
- ICAI and CAs: Supporting India's Journey to Become a $30 Trillion Economy by 2047
- CBIC Mandates 1-Year Deadline for Customs Fraud Inquiries
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
