ESOP Tax Deferral for Startup Employees
Section 192(1C) deferral for eligible startups
- 1CheckCompany's 80-IAC eligibility confirmed.
- 2ValuePerquisite computed at exercise.
- 3TrackDeferred tax paid on the trigger.
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Pick a plan — the fee is adjusted if you hire us within 30 days.
About ESOP Tax Deferral for Startup Employees
A clear overview, in simple terms — what it is, why it matters, and how we handle it.
Normally ESOP perquisite tax is due when you exercise. Employees of eligible startups — DPIIT-recognised startups certified for the Section 80-IAC tax holiday — can defer that tax until the earliest of 48 months from the end of the relevant assessment year, the date they sell the shares, or the date they leave the company. The employer deducts TDS within 14 days of that trigger, at the rates then in force.
Deferral helps employees who exercise options in an illiquid company without cash to pay tax. It applies only to employees of startups holding the inter-ministerial board certificate for 80-IAC, not to every DPIIT-recognised startup.
We confirm the company's eligibility, compute the perquisite at exercise using a registered valuer's report for unlisted shares, and set up tracking so the deferred TDS is deducted on time.
| Provision | Section 192(1C) |
|---|---|
| Eligible employer | Startup certified under Section 80-IAC |
| Deferred until | Earliest of 48 months after the AY, sale, or leaving |
| Valuation | FMV by registered valuer for unlisted shares |
| TDS | Within 14 days of the trigger |
Who this is for
Common scenarios where this service is a good fit.
- Startup employees exercising ESOPs
- Startup HR and finance teams
- Founders designing ESOP plans
What you get
Clear deliverables so you know exactly what's included.
- Eligibility check
- Perquisite computation
- Deferral tracking
- Employee ITR filing
Expert review before every submission — not just data entry.
Working notes and reconciliations you can rely on in future notices.
Resident Indians, NRIs, expats and cross-border businesses — all served.
Documents required
A practical checklist. We'll tell you if anything else is needed based on your case.
* This is a base checklist. After a quick pre-check, we may ask for additional items specific to your case.
Process
A simple, trackable workflow — designed to avoid back-and-forth.
Company's 80-IAC eligibility confirmed.
Perquisite computed at exercise.
Deferred tax paid on the trigger.
Get a quote
We share a clear quote on WhatsApp after a quick checklist pre-check.
- Fixed quote on WhatsApp after a short look at your facts and documents.
- Government fees, if any, are paid at actuals and shown separately.
| Factor | DIY | Indus Tax |
|---|---|---|
| Expert review | ❌ | ✅ |
| Notice risk reduction | ❌ | ✅ |
| Deduction optimisation | ❌ | ✅ |
| Audit-ready records | ❌ | ✅ |
| AIS/26AS reconciliation | ❌ | ✅ |
Share your facts and deadline. We'll reply with the right checklist and a clear quote.
Fee adjusted against our service fee if you go ahead within 30 days.
- Priority CA Call-backSkip the queue — a CA calls you within 30 minutes.₹255
- RecommendedCA Consultation (30 min)Talk one matter through properly with a CA.₹755
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Answers to the most common questions we get.
Official sources
Indus Tax is a private professional services firm and is not affiliated with any government authority. Rules and fees change — we confirm current positions before filing.
