ESOP Taxation for Startups post Budget 2020: Action and Inputs
However, in the Finance Bill we have found that the benefit has only been made available to IMB certified startups (approximately less than 250 in India) and the criteria also includes the earliest of sale, 5 year period post Exercise Date or employee exit from the company. This will not result in much benefit for neither the startup ecosystem nor the employee.
We are taking up this issue with the Finance Ministry as well as Ministry of Commerce so the additional conditions are removed and the benefit is made available to all DPIIT registered startups, atleast the ones exempt from angel tax. Additional declarations may be sought by the Government. We will keep you posted.
If you have additional inputs on this subject, you are welcome to share the same. more
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