{"act":{"id":"finance-act-1999","short_title":"The Finance Act, 1999","long_title":"An Act to give effect to the financial proposals of the Central Government for the financial year 1999-2000.","act_number":null,"act_year":1999,"enact_date":null,"enforcement_date":null,"ministry":"Ministry of Finance","department":"Department of Revenue","jurisdiction":"CENTRAL","unit":"section","section_count":102,"in_force":true,"spent":false,"spent_note":null,"duplicate_of":null,"text_source":"published","scan_url":null,"url":"https://indiacode.ecourtsindia.com/finance-act-1999/"},"unit":"section","section":{"number":"10","heading":"Amendment of section 17","text":"Amendment of section 17. 10. In section 17 of the Income-tax Act, in clause (2), after sub-clause (iii), the following sub-clause shall be inserted with effect from the 1st day of April, 2000, namely :— ‘(iiia) the value of any specified security allotted or transferred, directly or indirectly, by any person free of cost or at concessional rate, to an individual who is or has been in employment of that person : Provided that in a case where allotment or transfer of specified securities is made in pursuance of an option exercised by an individual, the value of the specified securities shall be taxa­ble in the previous year in which such option is exercised by such individual. Explanation.—For the purposes of this clause,— (a) \"cost\" means the amount actually paid for acquiring specified securities and where no money has been paid, the cost shall be taken as nil; (b) \"specified security\" means the securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and includes employees’ stock option and sweat equity shares; (c) \"sweat equity shares\" means equity shares issued by a company to its employees or directors at a discount or for con­sideration other than cash or providing know-how or making avail­able rights in the nature of intellectual property rights or value additions, by whatever name called; and (d) \"value\" means the difference between the fair market value and the cost for acquiring specified securities.’. © Copyright. Taxmann Publications Pvt. Ltd.","html":"<p><b>Amendment of section 17.</b></p><p><b>10.</b> In section 17 of the Income-tax Act, in clause (<i>2</i>), after sub-clause (<i>iii</i>), the following sub-clause shall be inserted with effect from the 1st day of April, 2000, namely :—</p><p>‘(<i>iiia</i>) the value of any specified security allotted or transferred, directly or indirectly, by any person free of cost or at concessional rate, to an individual who is or has been in employment of that person :</p><p><b>Provided</b> that in a case where allotment or transfer of specified securities is made in pursuance of an option exercised by an individual, the value of the specified securities shall be taxa­ble in the previous year in which such option is exercised by such individual.</p><p><i>Explanation.</i>—For the purposes of this clause,—</p><p>(<i>a</i>) \"cost\" means the amount actually paid for acquiring specified securities and where no money has been paid, the cost shall be taken as <i>nil;</i></p><p>(<i>b</i>) \"specified security\" means the securities as defined in clause (<i>h</i>) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and includes employees’ stock option and sweat equity shares;</p><p>(<i>c</i>) \"sweat equity shares\" means equity shares issued by a company to its employees or directors at a discount or for con­sideration other than cash or providing know-how or making avail­able rights in the nature of intellectual property rights or value additions, by whatever name called; and</p><p>(<i>d</i>) \"value\" means the difference between the fair market value and the cost for acquiring specified securities.’.</p><p>© Copyright. Taxmann Publications Pvt. Ltd.</p>","words":251,"text_source":"published"},"classification":[],"instruments":[],"judgments":[],"corresponds_to":[],"url":"https://indiacode.ecourtsindia.com/finance-act-1999/section/10/","note":null,"source_note":"Harvested from the Income Tax Department's own portal at incometaxindia.gov.in, which publishes the Finance Acts section by section. India Code carries none of them: its Central community holds the Acts that stand as general law, and a Finance Act is an amending and rate-fixing instrument.","judgments_note":"Judgment holdings are the ratio decidendi as extracted from the order by eCourts India, reproduced unaltered. Reported judgments only.","licence":"Published with commentary and other original matter under s.52(1)(q)(ii), Copyright Act 1957."}