Schedule: Tax Deferred on ESOP – Details of tax deferred on perquisites under section 17(2)(vi) from eligible start-ups u/s 80-IAC

‘Schedule: Tax deferred on ESOP’ in the Income Tax Return (ITR) form applies to employees of eligible start-ups (as defined under Section 80-IAC) who have opted to defer tax on perquisites arising from the allotment or transfer of specified securities or sweat equity shares under Section 17(2)(vi). The tax on such perquisites is not payable immediately and may be deferred until certain triggering events occur.

The schedule requires details such as the assessment year to which the deferred tax relates, the amount of deferred tax brought forward, and whether any of the following triggering events occurred during the previous year relevant to the current assessment year:

• Sale of specified securities or sweat equity shares (fully or partly)

• Cessation of employment with the allotting employer

• Completion of 48 months from the end of the relevant assessment year in which the shares were allotted

If a sale has occurred, the date and amount of tax attributable to such sale must be provided. In case of cessation of employment or expiry of the 48-month period, relevant dates must be specified.

Based on the event(s), the amount of tax payable in the current assessment year is calculated and reported. The balance amount of deferred tax, if any, is carried forward to future assessment years.