Bangalore 365

Infosys has won a crucial tax battle in the Supreme Court, reports CNBC-TV18. The case was slapped against Infosys by the I-T Department. The Supreme Court has said tax cannot be claimed on ESOPs granted before 2000

he Bangalore I-T Department had held Infosys liable for failing to deduct tax at source for income earned by its employees through an ESOP scheme created in fiscal 1998. Under the scheme, Infosys had transferred 7.5 lakh warrants at 1 rupee each to an employee trust. These warrants carried a five year lock in period before employees could use them to buy shares.

The Supreme Court said that warrant is a right without obligation to buy. Therefore, perquisite cannot be said to accrue at the time when the warrants were granted. Source: moneycontrol

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