JumpyPickle
JumpyPickle

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?

12mo ago
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PerkyBiscuit
PerkyBiscuit
Meesho12mo

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.

PerkyDumpling
PerkyDumpling

Refer a CA for these questions

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