ESOP Tax Guides

Demystify ESOP Taxation for Employees. Stay Fully Compliant as an Employer

From grant to exercise to sale, every equity milestone has tax consequences. Qapita helps companies simplify the tax journey that educate employees, simplify finance team execution, and ensure compliance across all tax events from grant to exercise to sale.

Recognized as a Global Leader on G2

We are ranked the best in Customer Satisfaction, Enterprise and Mid-Market.

Get It Right from the Start

Set up your cap table in minutes and establish a foundation that supports every stage of your growth. Model your first fundraise and understand how investor term sheets affect dilution. Qapita makes it easy to simulate outcomes and make informed equity decisions early.

Scale and Grow

As your company grows, your equity stack gets more complex. Qapita supports it all – options, SAFEs, preferred stock, warrants – with built-in workflows for board consents, investor updates, and structured governance. Every stakeholder stays aligned.

Stay compliant and confident

From valuations to filings, Qapita ensures your equity data is audit-ready and securely accessible to the right people. Manage 409A valuations, 83(b) elections, and reporting requirements with confidence – and stay ready for diligence at any moment.
Benefits

From Agent to Lead, every role gets the tools to thrive

Traditional QA methods are time-consuming and limited, providing only partial insights that slow down feedback or consistent, data-driven improvements.
India-Specific Tax Guidance for All Instruments

One Platform. All Tax Scenarios. Fully Explained.

We provide structured tax guides covering:

• ESOPs (perquisite taxation)
• SARs and Phantom Shares (cash-settled income)
• RSUs and Restricted Stock
• Secondary Sales and Buybacks (capital gains implications)

Each guide is customized to your company’s equity structure and payout model — ensuring relevant, scenario-based clarity.
Tax Lifecycle Education for Employees

Tax Doesn’t Have to Be a Mystery

Qapita supports employee communication with step-by-step tax explainers:

• What happens at grant, vesting, and exercise?
• What is the tax rate?
• How does perquisite tax calculated with FMV, exercise price?
• When is capital gains tax applicable?

We offer in-platform guidance, FAQs, and optional education sessions led by tax professionals.
TDS and Perquisite Tax Handling

Meet Every Filing and Disclosure Obligation with Ease

We help you compute perquisite tax on ESOP exercises and withhold TDS under Section 192 for company funded tax activities. Qapita generates per-user calculations, integrates with payroll - with full audit trails.
Global Tax Scenarios (Inbound & Outbound Employees)

Cross-Border Equity, Explained Simply

We support equity education across the lifecycle – from founder or HR-level workshops to employee tax guides in 160+ countries. We help explain grant mechanics, tax impacts, and long-term value in ways that build trust and alignment – not confusion.
Company-Funded Exercise Support

Support for Company-Sponsored ESOP Transactions

If your company funds ESOP exercises — either as a bridge before a liquidity event or to reduce employee tax burdens — Qapita helps structure and facilitate the transaction. We support cashless exercises, loan-led, net-settlement, or reimbursement mechanisms, with documentation, tracking, and cap table integration — ensuring clarity for employees and full control for the company.
Testimonials

Words From Our Valued Customers

They have extensive knowledge in this space. ESOP Direct guided us step by step through the entire process. We are particularly happy with their alacrity in responding to our queries!
Edward Tirtanata
CEO & Co-Founder, Kopi Kenangan
We are glad to have found a very competent consultant in ESOP Direct. A worthy partner to work with, is what I’d say.
Manhar Kapoor,
General Counsel & Company Secretary, Eicher Motors
ESOP Direct acted as Trustees for our employee stock option scheme. I am fully convinced we have made the right choice.
Umasree Parvathy
Chief Peoples Officer, Northern Arc
They worked alongside with us during the process great example of collaborative efforts to customize an employee stock option plan from scratch.
Yeoh Chen Chow
Co-Founder, MyFave
Their meticulous study and report gave us relevant data to take an informed decision. We are glad we engaged ESOP Direct.
Shailesh Singh
Head HR, Max Life Insurance
We entrusted our complete Plan administration function to ESOP Direct.I wish ESOP Direct greater success in the coming years.
Mona Cherian
President and Group Head HR, Thomas Cook
Qapita Works With Companies Across the Globe From Seed Stage to Listing and Beyond

Simplify ESOP Taxation From Grant to Sale

Educate your employees and ensure full compliance for your company across all tax events.
Testimonial

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Metrics

Helping You Elevate Your Equity Management

Value of Options Under Administration
10bn+
Assignments
1.4k+
Global Employees Served
300k+
Cumulative Years of Track Record
22+
Countries Served
50+
Other Offerings

Your Roadmap to Broader Equity Solutions

Employee Liquidity Programs

Enable structured liquidity events through buybacks and surrender programs, empowering employees without waiting for an IPO.

Employee Exercise Program

Make exercising options easy for employees and finance teams with a seamless, fully digital, compliant experience.

ESOP Instruments Feasibility Study

Choose the right equity instrument for your stage, strategy, and stakeholders by evaluating legal, tax, and control implications.
Integrations

Our Integrations

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FAQs

Frequently Asked Questions

What Is Cap Table Management—and Why Does Your Startup Need It?

Cap Table Management involves tracking all forms of company equity ownership—founders, investors, options, warrants, SAFEs, convertible notes—accurately and in real‑time. Managing this manually in spreadsheets often leads to errors, dilution, miscalculations, and delays during fundraising or due diligence. Qapita’s platform automates equity issuance, updates transactions instantly, and ensures compliance.

How Do I Import or Migrate an Existing Cap Table into Qapita?

Seamlessly. Qapita supports full history imports or snapshot-based imports using spreadsheets for stakeholders, transactions, share classes, vesting schedules, and convertible instruments. You can map stakeholders and import rows in bulk, then publish transactions to go live when ready. Qapita handles data validation to minimize manual cleanup.

How Often Should I Update My Cap Table—and What Are Common Mistakes to Avoid?

Your cap table should be updated as soon as any significant event takes place, such as new funding rounds, option exercises, transfers, employee departures, or SAFE conversions. Outdated or inaccurate Cap Tables can lead to valuation discrepancies, legal complications, and delays during fundraising or audits. With Qapita, every change is recorded instantly and traceable, reducing typical human errors.

How much does Qapita cost?

Our pricing is designed to support your journey—from early stage to growth and beyond. We offer flexible plans for both listed and unlisted companies. No hidden fees—just unmatched transparency that helps you avoid unexpected pricing spikes. To get a tailored quote, talk to our team or request a demo.

Can Qapita Model Dilution and Equity Ownership Changes in Real Time?

Yes. Qapita lets you run real-time simulations for new funding rounds, option pool expansions, and convertible note conversions. Founders and CFOs can instantly see how ownership shifts across every round.

Ensure Seamless ESOP Tax Compliance for Your Company

Simplify finance team execution and ensure full regulatory adherence across all tax events.