Assessee deducted perquisite tax on ESOP on date of allotment of shares. AO held that perquisite tax on ESOP should have been deducted on date of exercise of option. Allowing the appeal of the assessee the Tribunal held that as per S.17(2)(vi) obligation for withholding tax accrues only, when shares are allotted after completion of commitments on part of person who exercised option and not on date of exercise of option.( AY.2012-13)
Bharat Financial Inclusion Ltd. v. DCIT (2018) 172 ITD 198 (Hyd) (Trib.)
S. 17 : Perquisite -Employee Stock Option Plans- Tax arises in hands of employees, on date of allotment of shares and not on date of exercise of option. [ S.15, 17(2), 192, 201(1A) ]