How are RSUs/ESOPs taxed in India?

One thing to keep in mind is the financial year-end. Sometimes exercising or selling before March 31 can affect your tax bracket, so plan it strategically!

Hey Sachin, to answer your 4th question, RSUs are taxed at the time of vesting as a perquisite, and then capital gains tax when you sell them. ESOPs are taxed on exercise, so they are indeed treated differently.

I personally negotiated for higher base salary instead of ESOPs after a bad experience with a startup that tanked. It really depends on how much you believe in the company's future.

If you leave before full vesting, typically, you lose the unvested portion. But some companies have policies to retain vested options for a certain period. You might want to check your offer document or ask HR again.

In India, ESOPs are generally taxed at exercise as a perquisite. The perquisite value is the difference between the exercise price and the fair market value (FMV) on the date of exercise. Hope that helps!

Can someone explain the tax on capital gains if I decide to sell the shares later? Does it make a huge difference if I hold onto them for a year?