| COURT: | Supreme Court |
| CORAM: | Abhay Manohar Sapre J, R. K. Agrawal J |
| SECTION(S): | 17(2)(iii), 28(iv), 45, 48 |
| GENRE: | Domestic Tax |
| CATCH WORDS: | Perquisite, Stock Appreciation Rights, stock options |
| COUNSEL: | - |
| DATE: | April 24, 2018 (Date of pronouncement) |
| DATE: | April 26, 2018 (Date of publication) |
| AY: | 1998-99 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| Law on whether amount received by an employee from redemption of Stock Appreciation Rights (SARs) can be assessed as "perquisite" u/s 17(2) (iii) or as "profits of business" u/s 28 (iv) or as "capital gains" (despite no "cost of acquisition") u/s 45 explained. CBDT Circular No. 710 dated 24.07.1995 considered | |
The word “Perquisite” in common parlance may be defined as any perk or benefit attached to an employee or position besides salary or remuneration. Broadly speaking, these are usually noncash benefits given by an employer to an employee in addition to entitled salary or remuneration. It may be said that these benefits are generally provided by the employers in order to retain the talented employees in the organization. There are various instances of perquisite such as concessional rent accommodation provided by the employer, any sum paid by an employer in respect of an obligation which was actually payable by the employee etc. Section 17(2) of the IT Act was enacted by the legislature to give the broad view of term perquisite
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