Taxing of shares received by employees

Please tell me how to give tax treatment for this below stated case-
A employee receives a share of his company for Rs.680 per share...The actual value of one share in that company is Rs8000 per share...Under what head this income shall be treated for the employee? How tax treatment is to be given?
Replies (1)

The difference between the market value and exercise value is treated as perquisite and is taxable under head 'salary income'. Company deducts TDS over the perquisite.

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