New Delhi, Jan. 28 -- Ahead of the Union Budget 2026, IT industry body Nasscom has called on the government to tackle key tax issues affecting startups and technology companies.

As per a PTI report, Nasscom's pre-Budget agenda seeks relief on ESOP taxation, clearer rules for cloud service providers, and a reduction in compliance burdens.

Call to Expand ESOP Tax Deferment

Nasscom has urged the government to extend ESOP tax deferment to all startups recognised by the DPIIT, rather than restricting it to those approved by the Inter-Ministerial Board.

At present, fewer than 4,000 startups benefit from the ESOP deferment introduced in 2020, out of nearly 1.59 lakh DPIIT-recognised startups.

"ESOPs enable startups to attract high-quality t...