IPOs, FPOs, ESoPs exempt from STT for availing concessional LTCG tax
6 years, 3 months ago

IPOs, FPOs, ESoPs exempt from STT for availing concessional LTCG tax

Live Mint  

New Delhi: Initial public offerings, bonus, rights issues and ESoPs will be eligible for concessional rate of 10 per cent long-term capital gains tax even if the Securities Transaction Tax has not been paid earlier. The finance ministry also decided to exempt certain transaction from payment of STT for availing the concessional 10 per cent LTCG rate. Also the off-market transactions undertaken by non-residents in line with FDI guidelines, qualified institutional buyers, venture capitalist without payment of STT too could avail the 10 per cent LTCG rate. “Alongside the list of acquisition of equity shares which are not eligible for concessional 10 per cent tax on LTCG, the notification also provides carve-outs to insulate genuine acquisitions of non-STT based acquisitions,” Nangia said.

Cent Shares Ltcg Tax Gains Tax Stt Concessional Ltcg  transaction  capital  ipos  stt  cent  fpos  gains  tax  concessional  ltcg  availing  esops  term  shares  exempt

History of this topic

Budget 2025: Simplified capital gains tax, enhanced benefits on investors’ budget wish list
7 hours, 30 minutes ago

Budget 2025: Simplified capital gains tax, enhanced benefits on investors’ budget wish list

Live Mint  

Budget 2024 eliminated indexation advantages and rationalized capital gains tax on several products. Union Budget 2025 wish list Streamlining the capital gains tax is still a major priority as the Union Budget 2025 draws near. “Some of the key demands for the rationalization of capital gains tax include lowering tax rates on long-term capital gains, revising the thresholds for LTCG …

Yearender: From NPS Vatsalya to higher standard deduction, 5 money rules that changed in 2024
2 weeks, 1 day ago

Yearender: From NPS Vatsalya to higher standard deduction, 5 money rules that changed in 2024

Firstpost  

Apart from introducing changes to the National pension scheme and provding tax relief under the ’new tax regime’, the government also overhauled the capital gains taxation system, tightened TDS on property sale, and raised IMPS money transfer limit The year 2024 was quite eventful in India in terms of what it means for the layperson’s savings and money management. Revised …

Income tax news: How the ESOPs are taxed in India?
1 month ago

Income tax news: How the ESOPs are taxed in India?

Live Mint  

My employer offered me an ESOP two years ago when I joined the company. The shares concerning ESOP have tax incidence at two stages in India. Cost for the purpose of ESOP share shall be aggregate of the values of perquisite value taken for TDS purpose and amount if any paid by you, Since the shares being acquired by you …

Employee stock option plan: How to save taxes on ESOPs— explained
1 year, 3 months ago

Employee stock option plan: How to save taxes on ESOPs— explained

Live Mint  

Any profit arising on the sale of shares allotted to an individual under the employee stock option plan is taxed under the head ‘Capital Gains’ in India. Taxation on ESOPs “When an employee is allotted shares below its fair market value, the difference between fair market value and the price paid is taxed as perquisite in the hands of the …

Liquidating your ESOPs? Know the tax implication first
2 years, 1 month ago

Liquidating your ESOPs? Know the tax implication first

Live Mint  

So many youngsters eagerly join startup firms working on cutting-edge ideas backed by innovative technologies. The earnings from the difference between the sales price and exercise price of shares are taxed as either short-term or long-term capital gains depending on how long the shares were held. Long-term capital gain: Shares or ESOPs held for more than a year will be …

Can Esop income be taxed as capital gains?
6 years, 1 month ago

Can Esop income be taxed as capital gains?

Live Mint  

For the past few years, one thought that there is now clarity in the tax law regarding the taxation of employees stock options. The employee treated the gains arising on transfer of Esops as capital gains, with gains on Esops granted more than three years before being treated as long term. The tax officer treated the gains as short-term capital …

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