India will review the taxation of employee stock ownership plans (Esops) to address issues that curb their effectiveness as a compensation tool, said a senior finance ministry official. This review will not be confined to startups, he added. A proposal by the Department for Promotion of Industry and Internal Trade (DPIIT) had been examined by the finance ministry in the run-up to the budget but the view was that the entire framework needed to be reviewed, and not just for startups. A key issue is whether stock options should be taxed only when an employee sells them and not again at the time of vesting. There are also issues with the valuation of the benefit in the case of unlisted companies.