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.

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Quick Summary: Startup ESOP Tax Planner

In FY 2026-27, ESOPs are taxed at two stages: 1) Perquisite tax on exercise (Salary slab rate) and 2) Capital gains tax on sale (12.5% LTCG). For DPIIT-recognized startups, the perquisite tax can be deferred for up to 5 years or until the shares are sold or the employee leaves.

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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.

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