Sitharaman announces ease in tax burden of startup employees

Finance Minister Nirmala Sitharaman announced on Saturday that as part of efforts to boost startups, tax burden on employees due to tax on employee stock options would be deferred by five years or till they leave the company or when they sell it.

Finance Minister Nirmala Sitharaman announced on Saturday that as part of efforts to boost startups, tax burden on employees due to tax on employee stock options would be deferred by five years or till they leave the company or when they sell it. Referring to startups in her Budget speech, the Finance Minister said that several measures were planned to increase the base for the knowledge-driven enterprises.

"To boost startups, tax burden on employees due to tax on Employee Stock Options to be deferred by five years or till they leave the company or when they sell, whichever is earliest," she said. India is home to the world's third largest start-up ecosystem. Under the Start-Up India campaign, recognition has been accorded to 27,000 new startups in the country. (ANI)