This is really good information. ESOPS in public listed companies in stock market is really simple, except for the exercising tax part to understand. But for a private ltd. company, it is tricky. and you should be cautious and assertive to find out complete information before agreeing to anything.
A well structured and informative video. 👍 I don't know anything about it but still found interest and watched completely just because the way you represented
Great thing about LLA is that the content quality is not diluted to make things simple. I saw a few videos before this one where they started on the wrong premise of ESOPs = stocks in value. If you are given 10L of Stocks and the value of the company goes 10 fold, you get 1Cr. But if they where 10L of esops, you get 90L effectively (before tax)
This is the only video I had to watch to understand ESOPs. Thank you. Also Let’s say I received ESOP from my startup company at very early stage before set round. Won’t it be better if i excise it immediately so that I have to pay less tax, and now I own the actual stocks that will grow and can be liquidated anytime. Why should I negotiate for longer excise period which will not only increase the tax I have to pay and also increases the stock conversion time?
see the exercised shares as an income, if u earn less thats less tax, more shares earned is more tax. a greater exercise period enables u to be able to basically unlock ur income that has been given to u but will be unlocked after u pay the exercise amount. the difference between exercise and market value is ur income.
Amazing video!!. Just want to clear one doubt, while exercising, the tax has to be paid on the diff between: 1. FMV at time of exercise(current date) - exercise price or 2. FMV at the time of ESOP allotment - exercise price A followup question to this- If the tax is calculated by #1, i.e => FMV at time of exercise(current date) - exercise price then will the Tax to be paid = 0, if current FMV of the ESOP < Exercise price? i.e for ex - FMV(current date) = Rs. 10 Exercise price = Rs. 20 So , will tax be zero in this case, if I want to exercise this ESOP?
So according to you if you think that the startup where a person is working does not have a vision or a long term goal toh salary kam leke ESOPs lena better hai . Because ESOPs wagrah bade startups me toh sunn ne me ache lagte hai but as you know india me har din 10 startups bante hai 100 band hote hai . Toh uss hisab se sunn ne me bahaut acha lagta hai but at the end of the day double tax bhi employee bhare , liquidity ka wait bhi employee kare , vesting period tak wait bhi wo kare , exercise period agar kam hua toh uske liye bhi koi rasta nai h , liquidate karne ke liye unn 3-4 options ka wait kare toh uss hisab se toh koi matlab hi nai baitha
Wow!! again best one, Can you please make a video over tax computation on Eshop !! & how Employee should keep his mindset over his tax planning in Eshop.
Ossum Video sir ji. You r channel is really amazing. Sir ji I have a question that if Our ESOPS are just finished I mean They have completed their 4 years term and now we got that 100 percent so will we be given These ESOPS another time like for another 4 years and its goes on
few questions: 1. Can company reject your exercise option. 2. What if none of 4 event happen to sell share. 3. Can company change ESOP plan during your employment.
Sir ,I have got share before 3 year back in organization,now organization has issue some new share to new employee but they have not got top-up of old employees so plz advise me
Rishab nice video Just if you can cover about mnc companies also, bcoz they are not listed in Indian share market. And also if possible try to cover what tax we need to pay in india for Mnc esop. Thank you
"GHANTA" in CAPS Agar aap Empolyee ho to isme mat faso, Agar aap ready ho 2-5 years 5% increment ke sath(Jab sabhi yearly 30-50(even100%) hike) le rahe ho to hi ye OK hai, Kyun ki ye sirf Company profit ke lieye aur Empoyee ko Lubandne ki consept hai
I guess you never received ESOP's or was cheated for some reason. ESOPS/RSUS are absolutely safe, legal and would make you money. Due diligence is required from own side to validate and get information in clarity and in grant letter. If one doesn't understand ESOPS as an important salary component, then they are still in infancy of employment. I would encourage you to learn more about it and possibly understand this important salary component. Ignorance or arrogance to something we don't understand will not help you grow in any means.
0:00 Introduction to ESOPs 2:35 ESOP Kya hai? What is ESOP? 2:59 Why companies give ESOP? 3:40 How ESOPs work? 4:10 ESOP Grant letter 4:32 ESOP Exercise Price 7:28 ESOP Cliff 8:20 ESOP Vesting 9:32 ESOP Exercise period 12:45 Selling ESOPs 15:55 ESOP Taxation 18:47 ESOP Pool 21:30 Is ESOP legal? _________________________ How to raise startup funding course: learn.lpt.institute/s/store/c... Full ESOP Discussion with CA Abhishek Soni ( Tax2Win ) th-cam.com/video/qagrC278zn8/w-d-xo.html Full ESOP Discission with Harsh Shah ( Fynd ) th-cam.com/video/h6-mOTa1dJU/w-d-xo.html
Thankyou for this Great Information👏. I do have a doubt, can esops be vested during notice period or one should wait for vesting to be done before putting down the papers?
Hello Rishabh Sir, thank you very much for such an amazing informative videos. My question is - how can an employee opt for ESOP of an existing company like TCS?
Generally listed companies will give have some part of your CTC in stocks, added to that you will have an ESPP option, where you can buy the companies shares by getting some part of salary withheld, generally at a discounted price. Talk to your HR/Manager about whether TCS gives you that option.
Important question: What happens if I paid the tax on the perquisite income from ESOPs, but the company went bust later on? Can I report this as a loss and adjust my taxes?
Hi Rishabh good informative video. Had a quick question if the company is 8 yrs old and decides to give esops now and tells that we will give u all shares at once now. Is that beneficial ?
Hi Team ! This was really an insightful session on ESOPs , just had few queries here : 1. For a startup , when we are getting ESOPs at the time of joining and company is componsating it with 40% ESOPs (let's say CTC of 10 Lacs , 4 Lacs of ESOPs) , it essentially means I am getting x no of shares on such exercise price so that x no of esop * exercise price = 4 Lacs? 2. If above is true , and let's say I work in the organisation for next 2 years and now the exercise price is 3x of initial value. Now when I will be resigning , I need to give the exercise price ( 4 LACS) to company to get my no of share? 3. If company is not listed , will company buy back the shares from us? Or what is the procedure? and since the company is not listed , is is something similar to normal stocks that will be added into my demat account? Or what is the actual process around it? Thanks
Hi Rishabh, My employer allows buying shares up to 50% of my salary (listed on the London Stock Exchange at 20% less than the market price, the stock price has been mostly flat during the last 5 years). My question what is the tax calculation in this situation and the final question should I opt for this option whats your opinion on this?
Okay so If I have liquidity... it's good to exercise early I guess? otherwise I'll pay big amount of tax in my tax bracket rather than paying that as capital gains. However, it comes with big risk that you're putting big bet on the company very early.
Hi Labour Law Advisor Team, Great video!!! I have one query, For example, If one working in a listed company asks for ESOP at an exercise price near to the market price then will the tax on exercising the ESOP be near zero? Will the company allow such an ESOP exercise price? Currently, Mr X is earning 8,00,000 but wishes to go into the 6+2 system where 6 is gross salary and 2 is ESOP at near to the Market price then when Mr X exercise the option his net taxable income should be 6 + y - deductions where y is the diff between market and exercise price but it is very small. Right!? So, can ESOP be used to reduce taxes like this!? Ignoring ltcg/stcg for now.
as you said that, if i buys a stock worth 50000 and sells at the rate of 80000 then i have to pay tax of 30000. then what is my profit? because buyed at 50000 and sold at 80000 tax paid 30000? buyed stock amount is equal to sold stock amount?
MAINE SUNA HAI KI MNC COMPANY EMPLOY KO SALARY KA KUCH HISSA AS A SHARE DETE HAI TO COMAPNY VO SHARE KAHA SE DETI HAI.. KHUD KI PROMOTER HOLDING SE YA KAHI AUR SE
Watch a recorded webinar on "Using ESOPs as a Hiring currency" Link: th-cam.com/video/Bt0OgPt1yvs/w-d-xo.html This webinar is helpful for those who want to determine whether an ESOP can be used as a hiring tool. from this webinar You will gain a complete understanding of how ESOPs can be used for hiring the best talents.
Sir it been like 2 years i am trying to figure out is companies like unlisted zone and few other are safe to buy unlisted shares , please make a review video or something not able to get much from it
I have few questions - can i hold esop as long as i want? is there any defined period? Can i sell my esops back to the company after exercising? Whats the liquidity issue in esops - do i have to find a buyer for my esops or what? whats the issue if the exercise period is low for like 3 months?
Tax Planning Course: www.taxplanningforsalariedemployees.com/
COURSES: labourlawadvisor.in/link/LPTI
DEMAT ACCOUNT: link.labourlawadvisor.in/demat
File ITR: labourlawadvisor.in/link/tax
Please make video on RSU
Kya isme lock in period ka option rehta hai ki nhi please batana.
Very informative👌
👌prashad bhai and LLA
🥰🥰🥰🌝😊😊
This is really good information.
ESOPS in public listed companies in stock market is really simple, except for the exercising tax part to understand.
But for a private ltd. company, it is tricky.
and you should be cautious and assertive to find out complete information before agreeing to anything.
Thanks a lot Rishabh Sir for sharing a lot of information in a very small video :)
Really love your content ❤️
Hmari company ne kl hi ESOP announced kiya..Or aaj aap ka video .Great Surprise 😊
Kaunsi company hay brother?
This is awesome information. many of us are still struggling to understand this concepts.
I am glad Labour Law Advisor exists. Thank you so much
A well structured and informative video. 👍 I don't know anything about it but still found interest and watched completely just because the way you represented
Great thing about LLA is that the content quality is not diluted to make things simple. I saw a few videos before this one where they started on the wrong premise of ESOPs = stocks in value.
If you are given 10L of Stocks and the value of the company goes 10 fold, you get 1Cr. But if they where 10L of esops, you get 90L effectively (before tax)
Thank you Rishab, great video! How does an equity "refresh" grant work? It'll be very helpful if you can explain.
This is the only video I had to watch to understand ESOPs. Thank you.
Also Let’s say I received ESOP from my startup company at very early stage before set round. Won’t it be better if i excise it immediately so that I have to pay less tax, and now I own the actual stocks that will grow and can be liquidated anytime.
Why should I negotiate for longer excise period which will not only increase the tax I have to pay and also increases the stock conversion time?
see the exercised shares as an income, if u earn less thats less tax, more shares earned is more tax. a greater exercise period enables u to be able to basically unlock ur income that has been given to u but will be unlocked after u pay the exercise amount. the difference between exercise and market value is ur income.
Amazing video!!. Just want to clear one doubt, while exercising, the tax has to be paid on the diff between:
1. FMV at time of exercise(current date) - exercise price
or
2. FMV at the time of ESOP allotment - exercise price
A followup question to this-
If the tax is calculated by #1, i.e => FMV at time of exercise(current date) - exercise price
then will the Tax to be paid = 0, if current FMV of the ESOP < Exercise price? i.e for ex -
FMV(current date) = Rs. 10
Exercise price = Rs. 20
So , will tax be zero in this case, if I want to exercise this ESOP?
Amazing video, covered in depth of ESOP, loved it 👍
Very informative. Thanks a s lot
Zomato should pay you guys for all the free advertisements 🤣😅
Good content!!
Thank u very much Rishabh ji for explanation of ESOP....covered all aspects
So according to you if you think that the startup where a person is working does not have a vision or a long term goal toh salary kam leke ESOPs lena better hai . Because ESOPs wagrah bade startups me toh sunn ne me ache lagte hai but as you know india me har din 10 startups bante hai 100 band hote hai . Toh uss hisab se sunn ne me bahaut acha lagta hai but at the end of the day double tax bhi employee bhare , liquidity ka wait bhi employee kare , vesting period tak wait bhi wo kare , exercise period agar kam hua toh uske liye bhi koi rasta nai h , liquidate karne ke liye unn 3-4 options ka wait kare toh uss hisab se toh koi matlab hi nai baitha
Wow!! again best one, Can you please make a video over tax computation on Eshop !! & how Employee should keep his mindset over his tax planning in Eshop.
Given in this video only watch full
Informative Batt bole bhayya 👌🏼
Best video I have seen on this topic
Best explanation I found till now, thanks
Very informative video.
simple and helpful video. can you also please make video on filing tax if we own esop and also in case company is registered put of India.
Finally one question arises. Is esops good to take or not
This was informative. Thank you.
Good Channel, precious information.....
One request please be professional.....and please stop the unnecessary background music and unwanted video...
Thanks,
Music makes difficult topics bit easy :)
Very informative video. Thanks a lot
Very informative presentation.. Nice work lla. Keep posting such videos.., 👍
Nice video. Precisely detailed. Great work.
Thank you so much for valuable information ❤️
Ossum Video sir ji. You r channel is really amazing. Sir ji I have a question that if Our ESOPS are just finished I mean They have completed their 4 years term and now we got that 100 percent so will we be given These ESOPS another time like for another 4 years and its goes on
Please make a video on accounting entries required for RSUs, ESOP ot ESPPs
You are the best 🤩
@harsh sha ,
really liked the way you explained dedicatedly.
How to choose a financial Advisor or planner?
Please make a video on this topic.
please explain about SAP ( Share Appreciated Rights)
Fantabulous videos
Thanks very useful information
Hey please make video on icici pru future perfect plan!
few questions:
1. Can company reject your exercise option.
2. What if none of 4 event happen to sell share.
3. Can company change ESOP plan during your employment.
very detailed and informative
Thanks, for explaining this excercise period thing. My company gave me 20k shares now I have to read about the excercise time they gave me.
Sir ,I have got share before 3 year back in organization,now organization has issue some new share to new employee but they have not got top-up of old employees so plz advise me
@@umeshsingh-jx1fg konsi Company h?
Aapki Konsi Company h?
Rishab nice video
Just if you can cover about mnc companies also, bcoz they are not listed in Indian share market. And also if possible try to cover what tax we need to pay in india for Mnc esop.
Thank you
How to find out the best companies for ESOP, please make a video on this topic too.......thank you so much for the precious information
You'll join a job of a company just for the sake of ESOP ?
ESOPs cannot be purchased by anyone. Its for employees only
"GHANTA" in CAPS
Agar aap Empolyee ho to isme mat faso,
Agar aap ready ho 2-5 years 5% increment ke sath(Jab sabhi yearly 30-50(even100%) hike) le rahe ho to hi ye OK hai,
Kyun ki ye sirf Company profit ke lieye aur Empoyee ko Lubandne ki consept hai
I guess you never received ESOP's or was cheated for some reason.
ESOPS/RSUS are absolutely safe, legal and would make you money.
Due diligence is required from own side to validate and get information in clarity and in grant letter.
If one doesn't understand ESOPS as an important salary component, then they are still in infancy of employment. I would encourage you to learn more about it and possibly understand this important salary component.
Ignorance or arrogance to something we don't understand will not help you grow in any means.
Jagruk Janta 👍🙏
Thanks for this full guide for understanding esops
Sir, want to understand ESOP and how we are treated as a Partnership ?
please make a video on Stock apperician rights
0:00 Introduction to ESOPs
2:35 ESOP Kya hai? What is ESOP?
2:59 Why companies give ESOP?
3:40 How ESOPs work?
4:10 ESOP Grant letter
4:32 ESOP Exercise Price
7:28 ESOP Cliff
8:20 ESOP Vesting
9:32 ESOP Exercise period
12:45 Selling ESOPs
15:55 ESOP Taxation
18:47 ESOP Pool
21:30 Is ESOP legal?
_________________________
How to raise startup funding course: learn.lpt.institute/s/store/c...
Full ESOP Discussion with CA Abhishek Soni ( Tax2Win ) th-cam.com/video/qagrC278zn8/w-d-xo.html
Full ESOP Discission with Harsh Shah ( Fynd ) th-cam.com/video/h6-mOTa1dJU/w-d-xo.html
I wanted to understand, but I don't know hindi, I am from south side. So Make it in english.
Thank you for clear picture of esop
Thanks for the wonderful video .What's the difference between sweat equity & ESOP ?
Great video
Ready hu... jaldi millionaire banado plz
Video on share & share value plz
Thankyou for this Great Information👏. I do have a doubt, can esops be vested during notice period or one should wait for vesting to be done before putting down the papers?
Most Informative video .... any info related to ESOP of Tech MNC's or Tech Giants like FAANG companies in India?
request to explain RSU
Please explain RSU and ESPP also. Thank you amazing video
especially companies listed U.S. stock exchange and their tax
Agreed
Why not exercise as early as possible? Assuming FMV - EP will keep on increasing in future and tax liability will increase.
Hello Rishabh Sir, thank you very much for such an amazing informative videos.
My question is - how can an employee opt for ESOP of an existing company like TCS?
Generally listed companies will give have some part of your CTC in stocks, added to that you will have an ESPP option, where you can buy the companies shares by getting some part of salary withheld, generally at a discounted price. Talk to your HR/Manager about whether TCS gives you that option.
Car pe savings ka video banao bhai 🚗
Awesome
Important question: What happens if I paid the tax on the perquisite income from ESOPs, but the company went bust later on? Can I report this as a loss and adjust my taxes?
@rishab bhai kya stock market me lisit hone baad bhi company ESOPS deti hai
Sir please make video on business income tax slab for Intraday traders who are regular employees in a different company
All that income from intraday simply add to business income
Hi bhai uske bare me please make a separate video in detail for regular employees who make intraday trading. Uske tax slabs etc.
Kaise sale kar sakte aur inshare ki kya value ho sakti hai.compny currently working hai
Bitcoin pe video banaoo dogecoin bhi
Okay . I think so that's why tesla elon musk gaining after he completed some target. He exercising any shares may be.
Correct hai
Hi Rishabh good informative video. Had a quick question if the company is 8 yrs old and decides to give esops now and tells that we will give u all shares at once now. Is that beneficial ?
Hi Team ! This was really an insightful session on ESOPs , just had few queries here :
1. For a startup , when we are getting ESOPs at the time of joining and company is componsating it with 40% ESOPs (let's say CTC of 10 Lacs , 4 Lacs of ESOPs) , it essentially means I am getting x no of shares on such exercise price so that x no of esop * exercise price = 4 Lacs?
2. If above is true , and let's say I work in the organisation for next 2 years and now the exercise price is 3x of initial value. Now when I will be resigning , I need to give the exercise price ( 4 LACS) to company to get my no of share?
3. If company is not listed , will company buy back the shares from us? Or what is the procedure? and since the company is not listed , is is something similar to normal stocks that will be added into my demat account? Or what is the actual process around it?
Thanks
Number of shares, exercise price and vesting all is fixed as per initial grant letter and can not be changed
3. I have clearly answerd in video
Hi Rishabh, My employer allows buying shares up to 50% of my salary (listed on the London Stock Exchange at 20% less than the market price, the stock price has been mostly flat during the last 5 years). My question what is the tax calculation in this situation and the final question should I opt for this option whats your opinion on this?
Thanks a lot 😇
i know long time before if any share 10 rs issue price same 10 rs now big price selling
Sir can you please make a video on the difference between RSUs and ESOPs
Thanks a lot... :)
SIR , 20 SHARE KA PORTFOLIO K UPPER EK VIDEO BANANO , INVEST TIME 2 TO 3 YEARS .
What if i leave the company before the company is listed? Can i exercise it when the company is listed?
Sir, will you please guide me how to change husband/ father name in profile of pf account.
Please make video on it.. 🙏
Joint declaration form
Okay so If I have liquidity... it's good to exercise early I guess? otherwise I'll pay big amount of tax in my tax bracket rather than paying that as capital gains. However, it comes with big risk that you're putting big bet on the company very early.
What if employee leaves before vesting?😊
Hi...thanks for this knowledgeable video...I have a query...if it is possible can u pls explain how companies are required to deduct TDS on ESOP?
Thank you so much!
Sir make video for old PENTION scheme
We don't want NPS
You can't invest in old pension scheme now.
Can u recommend any stock market simulators app. I found ones who do not account for taxes, brokerages,stampduty and other charges.
Hi Labour Law Advisor Team,
Great video!!!
I have one query,
For example,
If one working in a listed company asks for ESOP at an exercise price near to the market price then will the tax on exercising the ESOP be near zero? Will the company allow such an ESOP exercise price?
Currently, Mr X is earning 8,00,000 but wishes to go into the 6+2 system where 6 is gross salary and 2 is ESOP at near to the Market price then when Mr X exercise the option his net taxable income should be 6 + y - deductions where y is the diff between market and exercise price but it is very small. Right!? So, can ESOP be used to reduce taxes like this!?
Ignoring ltcg/stcg for now.
as you said that, if i buys a stock worth 50000 and sells at the rate of 80000 then i have to pay tax of 30000. then what is my profit?
because buyed at 50000 and sold at 80000 tax paid 30000? buyed stock amount is equal to sold stock amount?
RSUs by US MNC.... Can you make a video on this and it's taxability please. Thank you
Thank you for explaining about ESOPs, can you please make another video on RSU's ?
MAINE SUNA HAI KI MNC COMPANY EMPLOY KO SALARY KA KUCH HISSA AS A SHARE DETE HAI TO COMAPNY VO SHARE KAHA SE DETI HAI.. KHUD KI PROMOTER HOLDING SE YA KAHI AUR SE
Sir does RSU and ESOP goes by same process, if not then how both are different?
Sir ji broking aap mai doucments safe h kay misuse to nhi hota plz reply
Safe hai
ESOP including in salary slip
Bhai mera company ka share US stock market mein listed hai. Tax implications kya honge?🤔
Mere papa Post office pe fixed karna chahte hei, post office pe fixed karna sahi rahega ya fir bond pe..reply karna sir
My bank has deducted GST on Foreign inward remittance transaction, how to claim that gst tax amount back in ITR?
under what section?
Watch a recorded webinar on "Using ESOPs as a Hiring currency" Link: th-cam.com/video/Bt0OgPt1yvs/w-d-xo.html This webinar is helpful for those who want to determine whether an ESOP can be used as a hiring tool. from this webinar
You will gain a complete understanding of how ESOPs can be used for hiring the best talents.
Sir it been like 2 years i am trying to figure out is companies like unlisted zone and few other are safe to buy unlisted shares , please make a review video or something not able to get much from it
I have few questions - can i hold esop as long as i want? is there any defined period? Can i sell my esops back to the company after exercising? Whats the liquidity issue in esops - do i have to find a buyer for my esops or what? whats the issue if the exercise period is low for like 3 months?
How to figure out an exercise period for any company? I hold esop but not aware about this.
How can we suggest to our company for esop, which is currently not giving esop.?