Question ID : 41113

Deductions under Income Tax Act in case of Cancellation of ESOP?OP

If the company had cancelled the granted employee stock options and on account of such Proposed Option Cancellation, employee gets cash compensation in full and final discharge during FY 2020-21. The TDS under section-192 was deducted by the company in respect of cash compensation against cancellation of ESOP. The employee was resigned from his job in the FY 2018-19 and the employee is not getting salary from any employer during FY 2020-21. Now, the query is whether the employee is eligible for deductions like Standard Deduction u/s 16(ia), Chapter-VIA deductions Section-80C etc.?

posted by CA Neha Gupta on Aug 5 2021 12:00AM