Can someone explain esop selling during/after ipo
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?
Talking product sense with Ridhi
9 min AI interview5 questions
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.
Refer a CA for these questions