How does tax on RSU and ESOP work in India
I'm very confused how tax on RSU and ESOP work in India. For RSU, is it the price at the time of allotment that is used for calculation or the time of vesting? What is the tax rate on stocks like Google, that are not traded on Indian exchanges. Some people mention they have higher tax rate. For ESOP, similar questions. Other then that. What happens if someone exercises options for private company and company doesn't go public or acquired. Can you clarify that as loss under capital gains. Example numbers would really help. TC: 0 (college student) #tax #taxindia #itr #indiatax #googleindia
For public company RSU, you get taxed on the vesting, not at the time of the grant. When you sell the vested stocks, you also have to pay capital gains tax on any capital gains you might have made.
What is the capital gains rate?
Unless your company is public there is no value of the stock unit you have RSU/ESOPs so there are no tax implications. As soon as you receive stock units of a publicly traded company, they are calculated as part of your income and you pay taxes based on your tax slab. When you wish to sell the stocks you pay tax for the gain in value of stock, % depends on when you sell (short term gain taxes vs long term gain taxes)
For public companies the income tax on it will be according to vesting time price or price at time of allotment?
What about capital gains tax rate. For stocks listed on Indian stock exchanges, the rate is 15% and 10%. For others, it s according to tax slab and ,20 percent.