So say one has 100 ESOPs which a person exercised and converted to say 1000 shares in say Jan 2024
Now if IPO happens in aug 2024, what will be the long term capital gains tax rate for these shares.
Will the tax rate change if one sells them say in Feb 2025, sept 2025 , Feb 2028 considering tax policy, tax rates to remain unchanged?
Less than 12 months so it will be short term capital gains - and equity shares sold on a stock exchange so 15% flat tax rate.
If sold after Feb2025, it becomes long term. If the gain exceeds 1 lakh then taxed at 10% flat tax rate
Making some progress .. gg 😁
Thanks for the validation 😛 @001
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...
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.
What happens to unexercised ESOP after IPO? I got to know that ESOP gets taxed at the time of exercise so it could lead to a huge financial burden. Also, is it possible to defer taxes after exercising of esops?