3 min read.Updated: 23 Nov 2022, 01:55 AM ISTSandeep Sehgal
The law in its present form seems to favour employees having deep pockets
An employee stock ownership plan (Esop) is an employee benefit plan that enables employees to own a part of the company they work for. Esops in India are presently taxed at two stages – one at the time of exercise of shares (i.e. when the employee sends his/her request to subscribe to the shares and the company allots those shares) and the second at the time of sale of the allotted shares. However, very often, there have been instances wherein the tax at the time of receiving the shares has caused difficulties in the hands of the employees and they may not be able to benefit from the scheme.