Say you have ESOPs in a company. Once the company goes public, is there a holding period applicable for the esop before which it can not be sold? Like 1 month/3 months/6 months holding periods?
Can someone also explain how the conversion of ESOPs to RSUs happens after IPO?
And mainly, tax implications and how to save tax?
6-12 months lock-in on employee stocks post ipo
31% tax deduction while being transferred to your dmat account — this will be treated as other income and will be taxed at your overall tax bracket so you can get refund if you don’t fall under 30% bracket
LTCG/STCG depending on when you sell the stocks in open market
There are ways to save capital gains tax but nothing special to save the flat 31% tax deduction on other income.
Perfios people asking the right questions. Following
Refer a CA for these questions
Primarily, my question targets startups which went ipo where you may joined when it was a private company and later it went public and you liquidates it.
I’ve not exercised my ESOPs from my previous employer. I am waiting for the company to go public. I quit the company in 2021. What will my tax be if I exercise and sell my stocks at the time of IPO? How much tax can I save if I buy a pro...
I am at a VC backed early stage startup. Have been offered Esops.l but have no clue on this. Can somebody explain to me how can I make money from ESOP by answering these-
