ESOPs in ITR

Writing based on what I learnt and did. Would strongly recommend talking to CA.

• Till you exercise, nothing to be done in ITR
• At the time of exercise, pay tax based on notional profit. (FMV - exercise price). It is unfair but this is what the law states. Also note that fmv can be different from valuation at the time of fundraising.
• if the company is registered outside of India, you now own foreign asset. You will have to declare it in ITR. You will also have to fill out 15 CA / Cb while remitting money abroad while exercising

No.

As long as you haven’t exercised any ESOPs there is nothing for you to report.

You only pay taxes and report when: you exercise (perquisite tax) and when you sell (capital gains).

Or if the company does a direct buy back then most likely you just end up paying perquisite then. You have nothing to worry about.

PS: I have spent years in this space.