Will Budget 2025 Finally Bring Startup ESOP Tax Relief?

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SUMMARY

While the ESOPs are beneficial for the employees, the benefits are yet to come on par with the conventional capital gains from the market

When employees of startups or unlisted companies receive shares via ESOPs, they have to pay taxes on two occasions: once when they exercise the option (i.e buy the shares) and when they sell them

The key demand from industry is that tax on ESOPs should be deferred until employees sell their shares, rather than being levied at the time of exercise

In November 2024, foodtech major



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Will Budget 2025 Finally Bring Startup ESOP Tax Relief?


SUMMARY

While the ESOPs are beneficial for the employees, the benefits are yet to come on par with the conventional capital gains from the market

When employees of startups or unlisted companies receive shares via ESOPs, they have to pay taxes on two occasions: once when they exercise the option (i.e buy the shares) and when they sell them

The key demand from industry is that tax on ESOPs should be deferred until employees sell their shares, rather than being levied at the time of exercise

In November 2024, foodtech major



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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