Calculation and Payment of FBT

A summary of Indian Income Tax laws on calculation of Fringe Benefit Tax on Stock based Compensation.

RSU’s (Restricted Stock Units)
– Tax on Fair Market Value of shares on vesting
– Payable when shares are “allotted” or transferred to the employees

ESPP’s
– Tax on the Discount on purchase
– Payable on purchase

Options
– Calculation, Spread being difference between fair market value on vesting and exercise price
– Payable at the time of exercise

more info at Hindu. Current FBT rate is at 33.99%

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American Express

Today in the notice board there was a poster inviting people to apply for American Express Platinum Credit Card.
Since I had heard so much about it, and seen the Abishek Bachan’s advertisements, I thought what the hell.. let me also apply. So I called up the agent and the only question he asked me was what is my CTC (salary)… Then he said.. Sorry you are not eligible.. You need to earn atleast 1.5 Million INR p.a. to get the card… and he hanged up.

What kind of a stupid Bank is American Express… If they are so much worried about the salary (which they have all rights to be) then mention it in the advertisement poster. Why on earth they wasted my time for nothing?

PS: Per capita income of an Indian is 384 USD… so 1.5M INR is like 100 times what an average Indian earns