Infosys case - every benefit is not taxable – Supreme Court
IN a remarkably interesting ruling, involving the IT giant Infosys Technologies, the Apex Court has held that every benefit received by a person is not taxable as income unless the Legislature makes the same taxable. For period prior to 2000, there were no provisions in the Income Tax Act to tax ESOPs . As regards the TDS , it noted that ESOPs were not taxable during the lock-in period as the value of non-transferable shares (perquisite) was not ascertainable. As regards the Clause ( iiia ) of Sec 17 the SC held that it was not clarificatory as argued by the Revenue and very much prospective if one goes by the wordings used in the Clause and the explanatory memorandum of the Finance Act, 1999.
We bring you this landmark judgement today.