Stock Option Valuation Rules Notified

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The Income-tax (Twelfth Amendment) Rules, 2007 (“Valuation Rules”) were notified on October 23, 2007 and shall be

effective for the assessment year 2008-2009 onwards. These much-awaited rules prescribe the methods that companies must adopt in valuing stock options that have vested with their employees.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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