An employee 'option' under the perquisite rules is a right to:
ABuy shares at a set price
BSell shares back to firm
CVote on company policy
DDraw a fixed dividend
Answer & Solution
Correct answer: A. Buy shares at a set price
An option is a right, but not an obligation, to apply for shares at a predetermined price.
Keep practising Salaries
Browse all Salaries questions for CA Inter, or explore more Taxation topics.
Related questions
Life insurance maturity sums are exempt except those received under which policy?Exempt travel concession from an employer for leave journeys covers places:HRA exemption fails if the employee has not actually:HRA exemption does not apply where the residence occupied by the employee is:House rent allowance is exempt only to meet expenditure actually incurred on:A payment from an approved superannuation fund on the death of a beneficiary is:With employer contribution also present, interest on employee PF deposits above what yearlAccumulated balance of a recognised provident fund is exempt as provided in which rule?