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How the TDS liability will be deferred in new system of ESOPs taxation?

February 12, 2020[2020] 114 212 (Article)
The Finance Bill 2020 has proposed to change the system of taxation in respect of perquisite arising from ESOPs. Under the new system, employees of eligible start-ups would be able to defer their tax liability in respect of ESOPs to subsequent years. Consequently, employer shall be liable to deduct tax on ESOPs in subsequent year and not in the year in which share are allotted to employees under ESOP.
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