Discount on shares issued under ESOP held as ‘expenditure’ and part of employees’ cost

IT : Object of issuing ESOPs at a price at a discount to market price is not to raise share capital but to earn profit by securing the consistent and concentrated efforts of its dedicated employees during the vesting period. Such discount is construed, both by the employees and company, as nothing but a part of package of remuneration. Discount on ESOPs is neither short capital receipt nor contingent liability. It is an expenditure. Discount on ESOPs deductible on straight line amortization basi