ESOP Valuation
Merchant-banker FMV for perquisite tax and option fair value for accounting
- 1CollectGrants, exercises and financials gathered.
- 2ValueFMV and option values prepared.
- 3ApplyTDS and accounting entries finalised.
Share your details. We’ll reply on WhatsApp with the next steps and a checklist.
Pick a plan — the fee is adjusted if you hire us within 30 days.
About ESOP Valuation
A clear overview, in simple terms — what it is, why it matters, and how we handle it.
Unlisted companies usually need two ESOP valuations. For employee tax, the fair market value of shares on the exercise date must be determined by a SEBI-registered Category I merchant banker, on that date or up to 180 days before it. For accounting, the fair value of options at grant — typically using Black-Scholes or a binomial model — sets the share-based payment expense under Ind AS 102 or the ICAI guidance note.
A stale or wrong FMV can lead to short deduction of TDS by the employer, so exercise windows should be timed with valuation dates. We coordinate the merchant banker report through our partner network and reconcile it with recent round prices.
For the books, we compute option fair values for each grant, vesting expense schedules and the disclosures auditors and investors expect.
| Tax valuation | SEBI-registered Category I merchant banker |
|---|---|
| Valuation date | Exercise date or up to 180 days earlier |
| Accounting | Ind AS 102 or ICAI Guidance Note on share-based payments |
| Models | Black-Scholes, binomial |
Work that the law requires a SEBI-registered Category I merchant banker to sign or represent is delivered through Indus Tax's partner professionals; our team prepares the records, coordinates the filing and stays your single point of contact.
Who this is for
Common scenarios where this service is a good fit.
- Companies whose employees are exercising options
- Startups recognising ESOP expense
- Companies preparing for audit or fundraising
What you get
Clear deliverables so you know exactly what's included.
- Merchant banker FMV coordination
- Option fair value per grant
- Expense schedule and disclosures
- TDS guidance on exercise
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.
Grants, exercises and financials gathered.
FMV and option values prepared.
TDS and accounting entries finalised.
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.
- Work that legally needs a SEBI-registered Category I merchant banker is signed by a partner professional; we coordinate it end to end.
- 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
- In-depth CA Review (60 min)Documents reviewed before the call, written action plan after.₹1,155
Call-backs run Mon–Sat, 9 AM–6 PM IST. Booked outside these hours? We call you first thing the next working morning.
Compare the 3 plansFrequently asked questions
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.
