NASSCOM says Budget 2021 should ensure ESOPs are taxed only when shares are sold
Sanchita DashJan 21, 2021, 18:07 IST
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With Budget 2021 around the corner, India’s IT body NASSCOM has submitted its suggestions for startups which includes further tax relaxations for employee stock ownership plans.
NASSCOM’s public policy head said that ESOPs should be taxed only when an employee sells the shares.
During Budget 2020, Finance Minister Nirmala Sitharaman had said that ESOPs can be taxed within five years or when they leave the company or when they sell their shares, whichever is earliest.When India’s Finance Minister Nirmala Sitharaman announced tax relaxations for Employee Stock Ownership Plans (ESOPs) during Budget 2020, India’s entrepreneurs welcomed the decision. But one year down the line, they are having second thoughts.