How does Section 80-IAC deferral benefit startup ESOPs?

Employees of DPIIT-recognized startups can defer paying tax on ESOP exercise (Stage 1 perquisite tax) until 5 years from exercise, the date of share sale, or when they leave the company—whichever is earliest.

What are the tax implications when selling startup ESOPs?

Selling ESOP shares attracts capital gains tax (Stage 2). If held for over 24 months (unlisted), it is taxed as Long-Term Capital Gains (LTCG) at 12.5%, otherwise as Short-Term Capital Gains (STCG) at slab rates.

Startup ESOP Tax PlannerFY 2026-27

Model ESOP perquisite tax deferral for DPIIT + 80-IAC startups. Identify trigger events and CG on sale.

Related Calculators

Income Tax Calculator

Old vs New Regime Advisor

Form 16 Gap Analyzer

IP Box Regime (Sec 115BBF) Calculator

Regulatory Disclaimer · FY 2026-27

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.