CORAA

Share Valuation Certificate for ESOP Perquisite — CA Issued (Word)

A CA-issued fair market value certificate for shares allotted on ESOP exercise, computing the perquisite value taxable under Section 17(2)(vi) of the Income-tax Act.

Free · CORAA original — SA-aligned
Updated 28 Jul 2026
Type
Certificate (not an audit opinion)
Computes
FMV per share × options exercised = perquisite value
Feeds
Sec 17(2)(vi) perquisite taxation, employer TDS on salary
UDIN
Required on every CA certificate
Share this template
Your firm — letterhead
Appears at the top of the document as the audit firm letterhead.
Used as the letterhead block.
Engagement details
The client and period this document is for.
Leave blank if this certificate covers a batch of exercises rather than one employee.
What’s inside

An excerpt from the template.

SHARE VALUATION CERTIFICATE — ESOP EXERCISE

This is to certify the fair market value of shares of ___ (PAN: ___) allotted on exercise of employee stock options on ______, computed as set out below, based on the valuation report / stock exchange quotation and ESOP scheme documents produced before us and the information and explanations given to us.

Valuation method applied: ___.

Perquisite Value Computation

↑ Excerpt only — the full template is what you download as Word
About this template

What you’re downloading, and when to use it.

This template follows the format published by the Institute of Chartered Accountants of India (ICAI) in the AASB Audit Working Paper Templates (June 2023), the authoritative reference for Indian statutory-audit documentation. Fill in your firm’s letterhead and the engagement details on the form above, click Download Word file, and you’ll get a fully formatted .docx ready to use.

Everything is generated in your browser and on a stateless API endpoint — no account, nothing stored on our servers. We’ll ask for a work email once before your first download so we can send you the file and the occasional relevant update; after that, downloads on this device are instant. Edit freely in Word, Google Docs or Pages before sending to your client.

Common questions

FAQs.

Is the perquisite value the same as the amount taxed in the employee's hands?
Not quite — the taxable perquisite is this FMV figure minus whatever the employee actually paid to exercise the option (the exercise price). This certificate computes the FMV side of that subtraction; the employer's payroll team applies the exercise-price deduction separately when computing TDS on salary.
Who can determine FMV for an unlisted company's ESOP shares?
Rule 3(8) of the Income-tax Rules requires a merchant banker (specifically a Category-I merchant banker registered with SEBI) to determine FMV for an unlisted company, as on the exercise date or any date within the preceding 180 days. A Chartered Accountant certifies the resulting perquisite computation but doesn't substitute for the merchant banker's valuation itself.
Does this certificate cover startups eligible for ESOP tax deferral under Section 192(1C)?
The FMV/perquisite computation here is the same regardless of whether deferral applies — Section 192(1C) defers WHEN the TDS is deducted (on sale of shares, end of employment, or 48 months from exercise, whichever is earliest, for an eligible start-up), not how the perquisite value itself is computed.
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