* When shares held by the government are transferred to the employee, no perquisite.
* When shares are offered at the same rate as to other shareholders, no perquisite.
* When shares are offered at a discount to the price offered to the shareholders, the difference is perquisite.
* When the shares are offered only to the employees, value of perquisite is the difference between the market price at the date of acceptance and the price at which the shares are offered.
* Form AY 2001 - 2002 employee share options are taxable only at the time of sale of shares under the head capital gains.