Co-founder & CEO of Techchefs
The Government's recognition of start ups as the engine of growth comes at a time when India bustling with startups. The proposal to ease the tax burden of ESOP on employees by deferring the tax payment by 5 years or till they leave the company or when they sell their shares, whichever is earliest, will further encourage companies to introduce ESOPs in their companies at a large level, which in turn will allow them to attract world-class talent while keeping employee costs in check. Also the gesture to extend the period for deduction of 100% of its profits from 7 years 10 years will boost the startup ecosystem by budding young entrepreneurs, while also creating employment opportunities.
(Published 02 February 2020, 08:20 IST)
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