ESOPs are a common tool used by startups to attract, retain, and reward employees as it allows them to employ talented employees at a relatively lower salary during the initial stages. Given that the shares may not be liquid and may or may not be worth something in the future, but the tax liability was upfront, the Government has deferred the taxability of ESOPs offered to employees of Eligible startups.
In continuation to our ‘Startup Series’, let us look at the taxability on ESOPs offered to employees of eligible startups in #4 of the series. (attached herewith).
Hope you find this interesting and useful. Please feel free to get in touch with us for any queries.
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