that company can issue shares to employees under an ESOS, however, subject to conditions as may be prescribed. Also, the proposed Bill specifies a requirement of having the shares valued by a registered valuer, subject to conditions as may be prescribed, wherein there is an ambiguity on whether the same is applicable to ESOS.
So, under the proposed Bill with everything being left open under the cover of ‘to be prescribed’, it would be a wait-and-watch approach wherein the suspense would unfold once the draft rules are prescribed. The same are expected to be rolled out for public opinion once the Bill receives its assent from the President.
The writer is senior tax professional, EY. Views expressed are personal.