Business Standard

Monday, December 23, 2024 | 04:57 AM ISTEN Hindi

Notification Icon
userprofile IconSearch

Bleeding shares of start-ups call for review of ESOP taxation policy

Companies generally deduct the tax payable at the time of allotment of shares by adding the income from ESOPs to employees' income as personal income tax

Premium

Companies generally deduct the tax payable at the time of allotment of shares by adding the income from ESOPs to employees' income as personal income tax.

Indivjal Dhasmana New Delhi
With market prices of listed start-ups down in the dumps, there is a case for reviewing the taxation structure of the employee stock ownership plan (ESOP) in the Budget for 2023-24.

The market price of Nykaa was down 86.6 per cent at Rs 150.55 as on Monday, compared to the issue price of Rs 1,125, while that of Paytm was down 76.6 per cent at Rs 503.8. Similarly, investors in Zomato, Delhivery and Policybazaar have lost their money.

This has led to a situation where those having ESOPs are facing huge capital losses. Currently, ESOPS are taxed at

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in