India, Jan. 31 -- In November 2024, foodtech major Swiggy went public with an INR 11,327 Cr IPO. This was one of the largest IPOs in the startup ecosystem of India recently, with many of the Swiggy employees getting a chance to make generational wealth by selling their shares they received via employee stock option plan or ESOPs.

ESOPs have become a key talent retention and wealth creation strategy for many startups in India, especially as the ecosystem has matured and the surge in the number of public listings.

However, while the ESOPs are beneficial for the employees, the benefits are yet to come on par with the conventional capital gains from the market.

How ESOP Taxation Currently Works

Essentially, when employees of startups or u...