EMPLOYEE STOCK OPTION TAXATION FOR STARTUPS

as per budget 2020-21 the change in taxability of ESOP is defer the tax means you have to pay tax later not on date of transfer so you can say that it is deferment not exemption, still you have an option to pay it later as in your query it is written, up to five years from the time of exercise, till the time they leave the startup, or until they sell their shares, whichever is earlier.