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Mahesh

Mahesh Padmanabhan  | Answer  |Ask -

Tax Expert - Answered on May 05, 2023

Mahesh Padmanabhan has specialised in payroll, personal and corporate taxation for more than two and a half decades, enabling him to provide practical, realistic and correct advice to his clients.
He is a member of The Institute of Chartered Accountants of India and has a degree in cost accounting from the Institute of Cost Accountants of India.
He is also a qualified information systems auditor. ... more
Vijay Question by Vijay on Apr 30, 2023Hindi
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What are the tax implications on the foreign company ESOP sell profits?

Ans: Hi Vijay

I am assuming that you are referring to sale of foreign shares held under ESOP grant held by an employee.

In case you have held the ESOP share for more than 24 months then it would be treated as Long Term asset. You could index the cost and any gain resulting from the calculation would be taxed at 20%

If the period of holding is shorter then the gain (if any) would be taxed at your slab rate.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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I have ESOP from a US-listed company for which I was working till 2018. It seems a trading account has been created in my name in US where the dividend proceeds from the ESOP stocks have been deposited along with the stock. Now what are the tax implications for me in India? I am now an Indian living in India. What steps must I follow for transferring the proceeds into my Indian account?
Ans: Any profit arising on the sale of shares allotted to you under the ESOP or any similar scheme is taxed under the head “Capital Gains" in India. The profits made on such shares shall be taxed as long-term capital gains if these shares are held for more than 24 months. You are entitled to claim indexation for computing the long-term capital gains. Long-term capital gains are taxed at a flat 20% after indexation. If the shares are sold within 24 months, the profits shall be taxed as short-term capital gains. The short-term capital gains are treated like your regular income and get taxed at a slab rate applicable to you. The holding period shall start from the date of allotment of the shares and not from the date of allotment of the ESOPs. I presume your employer had deducted/collected tax on the difference between the fair market value of the shares and the exercise price on the date of allotment. So when you sell these shares, the fair market value of such shares on the date of allotment shall be treated as your cost. Any excess realised over such cost shall be treated as capital gains.

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I am a 20 years old guy and in my past romantic relationships, have shown signs of emotional instability, too much dependency and lack of awareness of boundaries which affected my relationships badly...I hadn’t interacted with people in a long while since 2020 (precisely when lockdown had started) and feel that some aspects of my personality are not developed fully as they should be at this age. How to work on this? Also, i have noticed that I am able to create a good first impression but it soon pales and I feel like I am subtly disrespected or talked down to, and this has been happening in all interactions...i am always respectful (often to a fault!) and even have people pleasing tendencies...i sometimes ask immature weird questions and that might probably be the reason (but they’re never inappropriate)...but i do want to gain insights into why i am experiencing what i am and how to navigate this situation well so that I can maintain healthy relationships in future. Thanks you!
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First of all, I want you to understand that it is no small feat to realize the quirks and imperfections in ourselves- you have done it. Your effort to understand and rectify them deserves to be acknowledged and appreciated.
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Emotional instability and dependency- these behavioral patterns can stem from various factors; it can be a lack of confidence or some past issues that are left unresolved. It is difficult for me to tell you exactly why it is happening. It can also arise from a lack of validation. To manage it, you can focus on self-regulation- like meditation or journaling whenever you feel these emotions rising. This way you are expressing them but not damaging your relationships. Take up new hobbies or goals. Achieving milestones can build confidence.
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Talking to your partner openly is essential. Share your concerns honestly and listen to her perspective. If there are changes you've hoped for, express why they matter to you. At the same time, recognize that change is a two-way street—it requires effort and willingness from both sides. If she hasn't made efforts in the areas you've discussed, it may be worth considering whether this is a pattern that can be changed or a fundamental mismatch in expectations.

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If the relationship feels unsustainable despite your efforts, it may be time to consider a different path. It's understandable that you’re concerned about her well-being, especially given her mother's trust in you, but staying out of guilt or obligation can lead to further unhappiness for both of you. If you decide to part ways, doing so with kindness and honesty can help mitigate some of the hurt.

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In situations like this, it’s crucial to find support outside the immediate family. Reach out to trusted friends, family members, or support groups who can offer you emotional strength and practical advice. Consider speaking with a counselor or therapist who can help you navigate these complex emotions and provide strategies for dealing with the abuse and stress.

You’ve shown immense resilience, especially for your children. They need you to be strong, and seeking help is a vital step in preserving your mental and emotional well-being. Remember, prioritizing your health is not selfish; it’s necessary for you and your children’s future.

Also, explore any legal avenues or resources available for individuals in abusive relationships. Local support organizations, legal aid, or women’s shelters can provide advice and assistance if you decide that leaving the relationship is the best option for your safety and well-being.

You have already shown great courage by managing so much on your own. Continue to seek out support and know that you are not alone in this journey. There are people and resources willing to help you find a path to a healthier and more secure life.

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