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JumpyPancake
JumpyPancake
Swiggy

How's are captial gains taxed post IPO sell off?

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?

21mo ago
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SleepyTaco
SleepyTaco
Traya21mo

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

SqueakyWalrus
SqueakyWalrus
Student21mo

Making some progress .. gg 😁

SleepyTaco
SleepyTaco
Traya21mo

Thanks for the validation 😛 @001

DizzyLlama
DizzyLlama
Atlys21mo

Those are taxed similarly like publicly traded shares. Depending on when you sell, you'll be taxed at LTCG or STCG rates. Date would be from Jan 2024 when you got the stocks for your stock options

JumpyPancake
JumpyPancake
Swiggy21mo

Okay. Thanks a lot

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