Finance ministry may look into tax regime of employee stock ownership plan

The heart of the matter here is that whether stock options should be taxed only when the employee sells them and not again at time of vesting

The government will review the taxation regime of employess stock ownership plans (Esops). Esop is a compensation tool for employees and a review is underway to address the effectiveness of the instrument, reported Economic Times. The review will not be confined to startups. 

The stock option is an instrument used for compensation or to retain talent in the company. The DPIIT had pushed for making Esops in startups taxable only at the time of sale. 

The heart of the matter here is whether stock options should be taxed only when the employee sells them and not again at time