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T S Khurana

T S Khurana   |536 Answers  |Ask -

Tax Expert - Answered on Oct 22, 2025

A certified management accountant since 1993, T S Khurana is a fellow member of The Institute of Cost Accountants of India. His areas of expertise are income tax, specifically litigation cases, and GST.

Since the last 21 years, he has also been providing expert advice on financial matters, including investments and diversification of funds, and wealth building in the long term to his clients.
He believes that investment in real estate is the safest way for better returns and wealth generation over a period of time.

A former chairman of the Chandigarh Chapter of Institute of Cost Accountants of India, T S Khurana has also served as member of its technical committee.... more
jack Question by jack on Oct 21, 2025Hindi
Money

How to save tax on indian non listed company exercised Esop.

Ans: What I understand from your question is that you are looking for the options to save tax, when the Shares have been allotted to you.
In case of Allotment of Shares by a company to its employees on concessional rates, the difference between Allotment price & FMV (Fair market Value) shall be taxable in the hands of employee as fringe benefits.
In your case, since the Shares are not quoted on any Recognized Stock Exchange in India, its FMV (as on the date of allotment of shares) shall be determined by a merchant bank. Your company shall get this valuation from a merchant bank & all employees can take its advantage.
If you further want to save tax, you should adopt tax planning of your salaried income in a normal way (like u/s 80C, 80D, 80G etc.etc.).
Most Welcome for further clarifications, if any. Thanks.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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