Run-up to Budget 2025: Expand tax deferment on ESOPs to boost start-ups – Times of India

Run-up to Budget 2025: Expand tax deferment on ESOPs to boost start-ups – Times of India

The government introduced a tax deferment policy for Employee Stock Ownership Plans (ESOPs) in 2020 to address two key challenges faced by startup employees and employers: Immediate tax liability on employees receiving shares without actual monetary gains. Strain on startups’ finances due to tax deductions often exceeding employees’ salaries. ESOPs are taxed in 2 instances:…

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