Perquisite - Valuation of specified security not being an equity share in the company [Rule 3(9)] & Income pertaining to ESOP of start-ups.

ESOP income tax deferral for eligible start ups links employer withholding to exercise, transfer, sale or employment cessation.

Valuation of non equity specified securities is the fair market value determined by a merchant banker on the exercise date. For eligible start ups, the employer must deduct or pay tax on ESOP perquisites within a limited period measured from the earliest of a statutory deferral period expiry, the employee's sale of the security or sweat equity share, or the employee's cessation of employment, using rates applicable in the year of allotment or transfer.