'ESOPs taxation deferral will greatly ease tax burden'

Deferral of ESOPs taxation event will greatly ease the tax burden: ShakeDeal

Akshay Hegde,Co-founder & MD of ShakeDeal

By Akshay Hegde

“The deferral of ESOPs taxation event will greatly ease the tax burden and make ESOPs more attractive in nature. I think this was required as it was one of the key startup related points of discussion pre-budget.

In a move to ease the burden of compliance on SMeS, the threshold for audit requirements has gone up to 5 cr from the previous 1 cr. I believe this will simplify compliance for SMEs in a hugely positive way.

This budget speaks about QR code based retail invoices to promote formal economy with the help of cash back incentives. It’s a novel move to push the cashless and formal economy.

The increase in the 100 Cr turnover threshold for start-ups’ tax holiday coupled with the extension to 10 year window is another positive for start-ups.

On boosting the consumption, this budget has managed to put more cash in the hands of the consumers by further rejiggering the direct personal income tax rates. It leads to significantly greater savings for those with income upto 15 lacs which is the bulk of the population.”

(The writer is Co-founder & MD of ShakeDeal)