ESOP tax sops not for all startups on DPIIT list, says CBDT
To be exempt under Section 80-IAC, startups must have a turnover less than Rs 100 crore and be incorporated after March 31, 2016 but before April 1, 2021.
Synopsis
In her budget speech on February 1, Finance minister Nirmala Sitharaman had announced that employees at startups exempt under Section 80-IAC could defer paying income tax on stock options for a period of five years or until they quit the company or sell their shares.
BENGALURU: A proposal by the Department for Promotion of Industry and Internal Trade (DPIIT) to extend tax concessions on employee stock options, announced in the union budget, to all startups registered with it has been shot down by the Central Board of Direct Taxation (CBDT), according to multiple people aware of the developments.Instead, the CBDT is mulling changes to the Inter-ministerial Board (IMB) framework that grants exemptions to
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