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In what could impact future disputes, the Mumbai Income Tax Appellate Tribunal (ITAT) has ruled that grant of call option results in capital gain but not taxable under Singapore Treaty .  Ruling in a recent case, ITAT has confirmed that under normal circumstances mere grant of call option does not result into transfer of actual asset, since no right in the shares is given by way of grant of “call option”, except a right to buy the shares at a specified price within a fixed period of time.

Rakesh Nangia, Managing Partner shares his views  on Grant of call option results in capital gain but not taxable under Singapore Treaty: ITAT for Economic Times.

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