FirstCry ESOP Trust gets income tax reassessment notice for AY 2022-23
FIRSTCRY · price
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FirstCry's ESOP Trust received an income tax order and notice for Assessment Year 2022-23 from the IT Department, Pune. The department alleges that income chargeable to tax has escaped assessment relating to the issuance of about 1.04 crore shares to the ESOP Trust at face value of Rs. 5 per share instead of fair market value. No demand order has been passed yet, so the financial impact cannot be determined. The Trust says no income escaped assessment and believes it has a strong case. It is evaluating legal remedies to challenge the order.
No demand raised yet, so no immediate financial hit. Uncertainty around ESOP tax treatment remains; Trust plans to challenge.