Let's move ahead
We were discussing about Perquisites
Moving ahead in Perquisites
Let's talk about Benefits
What are Perquisites and Benefits which an Employer can
give to his Employee
Friends, for example
First of all, tell me
Can an Employer give a Gift to his Employee?
Please tell me
Can an Employer give a Gift to his Employee?
Can he give anything to his Employee?
What we have to see is
How much is taxable and how much is exempt
It's very simple
If an Employer is giving a Gift of Rs.
5000 to his Employee throughout the year
If an Employer is giving a Gift of Rs.
5000 to his Employee throughout the year
In that case, there will be no taxability in the Employee's
hands
But if
If an Employer is giving a Gift of Rs.
5000 to his Employee then all of it will be taxable
For example
If a Jethalal Bagha is given a watch worth Rs.
Will there be anything taxable in Bagha's hands?
If there is a limit of Rs.
5000 then I don't think Bagha will have anything taxable in
his hands
There will be nothing taxable
But suppose
Jethalal gave a job to Babita ji And Babita ji
Jethalal's heart
You know that Jethalal gifted Babita ji a diamond necklace
worth Rs.
1 crore
Jethalal gifted Babita ji a diamond necklace worth Rs.
1 crore
In that case, the Rs.
1 crore will be taxable in Babita ji's hands
It's a simple point
There is no problem, just take care of Rs.
Anything above Rs.
5000 will be taxable in the Employee's hands
Sir, secondly
You must have heard the term stock options
Employee's stock options ESOPs Let me remove it first
Otherwise, you will get confused
You must have heard the term ESOPs Employee's stock options
plan
ESOP What is this basically?
Whenever you join a company
The company tells you that you have a package of Rs.
6 lakhs You have a salary of Rs.
6 lakhs
If you work with us for 3 years
I will give you a share of my company Not a small share
I will give you a share of my company 5000 shares at that
time Now tell me
My first question is
Can an employer give shares to his employee?
Can he give the entire share of the company?
He can give anything
We just have to check the taxability or exemption
In that case, he can give the share of the company
Now the employer told the employee that you work with us
for 3 years
I will give you 5000 shares
At that time, whatever the rate will be after 3 years
I don't care about that
I will give you this share at the rate of Rs.
100 or Rs.
10 10 per share
But you will be able to take it when you give us a service
for 3 years
For example, a person joined here
His name was Mr.
Sher Khan
So, Sher Khan joined here
He joined here for 1-2 years and in the 3rd year he became
eligible for 5000 shares
The employer told him that you served us for 1-2 years and
at the end of the 3rd year
I will give you 5000 shares
Now try to understand the story
What is the benefit for the employee?
What is the benefit for the employee with this offer?
The benefit for the employee is that after 3 years
What I did was
Rs. 10 per share
At that time, whatever the rate will be
I will get that share
Today, the rate of the share has become Rs.
The share of Rs.
1000 at the rate of Rs.
How much did you get?
Rs. 10
What is the benefit for the employee?
Rs. 990
So, if I have to put something taxable
First of all, it should be taxable What will the employee
do with the income?
It is a simple thing
He has a share of Rs.
He will take Rs.
10 from here and sell it for Rs.
1000 in the market
The employee has an income
He has a profit of Rs.
How much taxable should be in his hands?
Rs. 990 multiplied by 5000 shares
It is a simple thing
So, in this case
If you get ESOPs
Employee Stock Option Plan
Any company gives it to the employee What will be taxable
in the hands of the employee?
What will be taxable in the hands of the employee?
It is always taxable in the hands of the employee
The fair market value of it minus the issue price
In this case, the issue price was Rs.
The fair market value was Rs.
We have taxed Rs.
990 in the hands of the employee
It is a perquisite
It will be taxable in the hands of the employee
This is the point
Simple as that