(4)For the purposes of this section,—(a)"fair market value" means the value determined in accordance with the method, as may be prescribed;(b)"family", in relation to an individual, shall have the meaning assigned to it in Schedule III (Note 2);(c)"gross total income" shall have the meaning assigned to it in section 122(10);(d)"hospital" includes a dispensary or a clinic or a nursing home;(e)"option" means a right but not an obligation, granted to an employee to apply for the specified security or sweat equity shares at a predetermined price;(f)"specified security" means the securities as defined in section 2(h) of the Securities Contracts (Regulation) Act, 1956 and, where of employees' stock option has been granted under any plan or scheme therefor, includes the securities offered under such plan or scheme;(g)"sweat equity shares" means equity shares issued by a company to its employees or directors at a discount or for consideration other than cash for providing know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called;(h)the value of any specified security or sweat equity shares shall be the fair market value of the specified security or sweat equity shares, on the date on which the option is exercised by the assessee, as reduced by the amount actually paid by, or recovered from, the assessee in respect of such security or shares.
