Hi,
I am an employee of an organisation and have been working here for the past 5 years. I have periodicially recieved ESOP's from the company at regular intervals as follows:
The 1st lot-A I received will be fully vested in by June next year, the 2nd lot-B I recieved was in April 12 this year and will be vested @ 25% every 12 months.
The 3rd lot-C, was recieved in April this year and will vest @ 25% every year.
The 4rd lot-C I recieved was again in March this year and will be fully vested in a years time.
My company is a private non listed company and not listed and it is about to be acquired by another foreign stock exchange listed company (London listed) in a few months. The deal is almost through now.
I have a couple of questions:
How will the gains arising from the shares be taxed? For example, will they be broke up and taxes as per short term and added to my salary or will they be taxed as per long term (20.6%?)
What I meant was that for lot A since I have held the shares for more than a year, they will be taxed as per capital gains right? For lot B, will the ones that have completed 1 year be taxed as per long term capital gains and the ones that are to complete 1 year will be taxed as short term? Say in April 12, I got 100 shares, in April 13, 25 of them could be vested and 25 in April 14, 25 in April 15. Now will 72 shares will liable for short term taxes and clubbed with my salary since the company is being bought before the vesting period gets over, i.e. less than 1 year and the remaining 75 subject to long term taxes since they are held for more than a year?
Since the buying company is not listed in India, capital gains will apply, right?
Capital gains tax will be deducted and the remaining amount paid to me? Can I avoid capital gains by investing in NHAI bonds (what is the limit) or buying a house?. If so, how do I go about it. i.e. do I have to inform my employer that I wish to invest capital gains, so please dont deducted taxes or does the employer deduct taxes and I claim a refund during filing returns by showing documents of buying a house or NHAI bonds?
Thanks in advance for your help,
MFF
CAclubindia
