Case Law Analysis
|Income Tax Appellate Tribunal
ESOP discount allowable as deduction under Section 37(1) Income Tax Act | ESOP expense treatment : ITAT Delhi
ITAT Delhi held that the discount on employee stock options is a deductible expense under Section 37(1) of the Income Tax Act, treating it as a composite expense under Section 57. Companies can now claim the ESOP discount against taxable income, reducing tax outgo. This benefits firms that grant ESOPs.