Tax Implications of ESOPs for Startup Companies in India You’ve likely heard about the term “ESOPs” being thrown around in the startup world, but what exactly are they, and why are they so important? ESOPs, or Employee Stock Ownership Plans, are a way for companies to offer their employees ownership stakes in the form of shares or stock options. For startups, ESOPs can be a game-changer when it comes to attracting and retaining top talent – after all, who doesn’t want a piece of the pie? But with these lucrative opportunities come a set of tax implications that you need to be aware of. In this blog post, we’ll explore ESOP taxation for startups in India, covering everything from how they work to the tax implications for both employees and companies. What is ESOP (Employee Stock Ownership Plan)? An ESOP is essentially a plan that allows employees to acquire shares or stock options in the company they work for, typically at a discounted price. There are different types of ESOPs, in