ESOPs are taxed twice—first as perquisites at exercise and later as capital gains on sale—creating a cash-flow burden for employees. While startup employees can defer tax under special provisions, most workers must pay tax upfront without liquidity, keeping ESOPs financially stressful.
The issue is rising reassessment notices driven by data analytics. The key takeaway is that strong procedural safeguards protect taxpayers.
The article explains how AIS-based data matching is triggering tax notices despite Form 26AS matching. The key takeaway is that AIS now drives scrutiny and compliance.