While presenting #Budget2020, Nirmala Sitharaman, Union Finance Minister said, “We recognize knowledge skills and risk-taking capabilities of youth. They are not job seekers, but job creators.” She proposed a seed fund to empower early-stage startups with a financial edge. “The government proposes to provide early life funding, including a seed fund to support ideation and development of early-stage startups,” she said.
ESOPs were mentioned for the first time in a financial budget with the taxation for ‘Exercise Tax’ on ESOPs being tweaked. Now, the exercise tax on ESOPs in “eligible startups” has been deferred to the time of sale of shares, 5 years or when the employee leaves the startup – whichever comes earliest. This change on exercise tax has received mixed responses and you can read a detailed blog on this here.
Click on the link below to watch the full video on the budget discussion!
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#budget2020 #letsventure #indianstartupecosystem #letstalkesop #trica equity