Employee Stock Option Plan ESOP explained in Hindi | Vesting Period | Taxation | Startups

[@LabourLawAdvisor]

Tax Planning Course: www.taxplanningforsalariedemployees.com/ COURSES: labourlawadvisor.in/link/LPTI DEMAT ACCOUNT: link.labourlawadvisor.in/demat File ITR: labourlawadvisor.in/link/tax

[@apnarecordthatmakeyoufeel]

Please make video on RSU

[@Aj-cm2cp]

Kya isme lock in period ka option rehta hai ki nhi please batana.

[@namaskarprasad]

Very informative👌

[@sunil_mewada_]

👌prashad bhai and LLA

[@intrinsicsatish]

🥰🥰🥰🌝😊😊

[@PabitraPadhy]

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.

[@PrajjwalSingh-q5v]

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?

[@Pop161089]

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

[@Abhishek-tq8hb]

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

[@HorrorJamHQ]

Thank you Rishab, great video! How does an equity "refresh" grant work? It'll be very helpful if you can explain.

[@shivamgarg7761]

Hmari company ne kl hi ESOP announced kiya..Or aaj aap ka video .Great Surprise 😊

[@RealThingX0]

Kaunsi company hay brother?

[@someshyv]

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)

[@raghavendrahavale]

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?

[@calm2584]

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.

[@TechInventorAman]

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

[@kannadaboys5426]

Finally one question arises. Is esops good to take or not

[@youtuberslifeupdates1293]

Thank u very much Rishabh ji for explanation of ESOP....covered all aspects

[@Rohan-dz4cd]

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.

[@itshardikrajgor]

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.

[@LabourLawAdvisor]

Given in this video only watch full

[@suryanshkatoch5884]

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

[@shivammittal704]

Best explanation I found till now, thanks

[@ajeetk57]

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.

[@arpitkansal3785]

How to choose a financial Advisor or planner? Please make a video on this topic.

[@akshaygupta8723]

Amazing video, covered in depth of ESOP, loved it 👍

[@iam.Ravi24]

Please make a video on accounting entries required for RSUs, ESOP ot ESPPs

[@spandankurapati8156]

Informative Batt bole bhayya 👌🏼

[@arjit.sharma]

please explain about SAP ( Share Appreciated Rights)

[@just00z]

Best video I have seen on this topic

[@hanuvignesh4342]

Very informative. Thanks a s lot

[@bikrampratihari3143]

Good Channel, precious information..... One request please be professional.....and please stop the unnecessary background music and unwanted video...

[@LabourLawAdvisor]

Thanks, Music makes difficult topics bit easy :)

[@Travelwithgaur]

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

[@LabourLawAdvisor]

Number of shares, exercise price and vesting all is fixed as per initial grant letter and can not be changed

[@LabourLawAdvisor]

3. I have clearly answerd in video

[@aryanchauhan6671]

Very informative video. Thanks a lot

[@UjjwalMaurya1234]

Very informative video.

[@ReyanshKharga]

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?

[@rahuldeshpande7159]

Zomato should pay you guys for all the free advertisements 🤣😅 Good content!!

[@maxmin1234]

Thanks for the wonderful video .What's the difference between sweat equity & ESOP ?

[@yogeshbisen5717]

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?

[@someshyv]

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.

[@rajan0843]

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

[@bindalsumit97]

You'll join a job of a company just for the sake of ESOP ? ESOPs cannot be purchased by anyone. Its for employees only

[@sarthakvarshney]

Nice video. Precisely detailed. Great work.

[@allmatham]

This was informative. Thank you.

[@ganeshp5179]

"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

[@PabitraPadhy]

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.

[@hardiktaluja3312]

Why not exercise as early as possible? Assuming FMV - EP will keep on increasing in future and tax liability will increase.

[@Harsh-oy4ly]

Hey please make video on icici pru future perfect plan!

[@gitgyan5202]

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?

[@subirdas5623]

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?

[@nikhilgala7162]

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

[@amandhyani6151]

You are the best 🤩

[@ABCfinance08]

Very informative presentation.. Nice work lla. Keep posting such videos.., 👍

[@bindalsumit97]

@harsh sha , really liked the way you explained dedicatedly.

[@vikashmotivations]

@rishab bhai kya stock market me lisit hone baad bhi company ESOPS deti hai

[@AnkurDubey]

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.

[@umeshsingh-jx1fg]

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

[@gauravdubey6110]

@@umeshsingh-jx1fg konsi Company h?

[@gauravdubey6110]

Aapki Konsi Company h?

[@rahulshinde6648]

Thank you so much for valuable information ❤️

[@vaibhavmatere18]

very detailed and informative

[@SatishKumar-uw1je]

Okay . I think so that's why tesla elon musk gaining after he completed some target. He exercising any shares may be.

[@LabourLawAdvisor]

Correct hai

[@deeptin5516]

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 ?

[@sudeepnaskar8174]

Kaise sale kar sakte aur inshare ki kya value ho sakti hai.compny currently working hai

[@THE-SLEDGEHAMMER]

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.

[@niteshlohariwal3985]

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?

[@MrKashish99]

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.

[@nirbhaybhargava1509]

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?

[@sucharitamondal2058]

Sir does RSU and ESOP goes by same process, if not then how both are different?

[@mukeshbhargava9924]

Sir, want to understand ESOP and how we are treated as a Partnership ?

[@ajmeramanoj]

Fantabulous videos

[@kalpeshchavan-g3r]

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?

[@praveenjoni920]

Most Informative video .... any info related to ESOP of Tech MNC's or Tech Giants like FAANG companies in India?

[@mayurharge2339]

please make a video on Stock apperician rights

[@vinaysridaragaddi3713]

Thanks very useful information

[@madhuragarwal9712]

Sir can you please make a video on the difference between RSUs and ESOPs

[@shivamgahoi]

Thanks for this full guide for understanding esops

[@rajatjain7545]

Please explain RSU and ESPP also. Thank you amazing video

[@mr_anand_parekh]

especially companies listed U.S. stock exchange and their tax

[@rajatjain7545]

Agreed

[@bharatseth2475]

Jagruk Janta 👍🙏

[@minimovies7815]

Can u recommend any stock market simulators app. I found ones who do not account for taxes, brokerages,stampduty and other charges.

[@sharu_indian_07]

Video on share & share value plz

[@pskfintax]

Thank you for clear picture of esop

[@amardas8672]

Mere papa Post office pe fixed karna chahte hei, post office pe fixed karna sahi rahega ya fir bond pe..reply karna sir

[@PushpendraChaurasiya]

How can we suggest to our company for esop, which is currently not giving esop.?

[@Me_Vasu]

My bank has deducted GST on Foreign inward remittance transaction, how to claim that gst tax amount back in ITR? under what section?

[@sharathrao6]

Sir please make video on business income tax slab for Intraday traders who are regular employees in a different company

[@LabourLawAdvisor]

All that income from intraday simply add to business income

[@sharathrao6]

Hi bhai uske bare me please make a separate video in detail for regular employees who make intraday trading. Uske tax slabs etc.

[@harshgupta484]

request to explain RSU

[@mohammedgazi815]

Bitcoin pe video banaoo dogecoin bhi

[@spinnerlake]

Bhai mera company ka share US stock market mein listed hai. Tax implications kya honge?🤔

[@sudeepnaskar8174]

Sir meri mother ki compny ne unko sgare diye they 10 rs paid up aur diye they 15 years around pehle around 600 shares they.. ab inki kya value ho sakti hai aur ..plz help

[@pradeepkrvk]

Ready hu... jaldi millionaire banado plz

[@chandansingh2080]

Sir meri company ne ESOP grant kiye h 2024 vesting schedule h agar mai job se reigns karta hu to mujhe kya milega

[@sunayanak5438]

What if employee leaves before vesting?😊

[@styletubeforbeauty4022]

i know long time before if any share 10 rs issue price same 10 rs now big price selling

[@milisharma5745]

Company suggested me to buy esop it's not free. then should i buy esop ?

[@rishabhchhabra2666]

Sir ji broking aap mai doucments safe h kay misuse to nhi hota plz reply

[@LabourLawAdvisor]

Safe hai

[@aliasultana4698]

How to figure out an exercise period for any company? I hold esop but not aware about this.

[@mitsankit]

Is there a thumb rule based on which an employee can ask for the no of esops one can ask for? For example, if my experience is 5 years, company is in series B funding and my offered ctc is 20 lacs - Can I ask something based on these data points?

[@latesthindisongs9679]

Great video

[@manjeetkuthe1717]

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

[@mr_anand_parekh]

Can you please make video on RSU , ESPP For an employee in India working in company listed on u.s. stock exchange.... Also dividend which is present in foreign demat account.. par mene abhi india nahi mangvaya wo dollars .. to uska tax respective itr me bharna he????

[@stocker3062]

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

[@vidhayakcheems1710]

Car pe savings ka video banao bhai 🚗

[@santoshkadam8431]

Let's say Currently exercise price is 100. And I have 100000 shares. I will be getting 25000 shares per year. Can I exercise all 100000 immediately? If yes is it good to do so? Will exercise price increase in future? If yes, in what case it increases.

[@saransankaran]

You can only exercise the options you have with you (options which are vested). So you cannot exercise all 100000 immediately. You will have to wait 4 years to get all that options and only then you can exercise them. Exercise price will not go up for your current grant. As they are mentioned in the grant letter and that is what you agreed to pay when you exercise your shares when the grant was offered.

[@dipakyadav6922]

What if employee don't have liquidity at end of vested period and don't want to buy ESOP even after signing grant letter

[@sakshamsingh6351]

is it beneficial to join paytm with some ESOPs (less than 10L) now?

[@rajanchauhan8140]

Thanks a lot 😇

[@showgaming2.0]

WHY DON'T YOU MAKE A COURSE ON how to be an investor.

[@ravitiwari4885]

Hello Sir Namste Mera Naam Rktiwari Hai Mein Ek Privet Companay mein Kaam Karta Hun Wahan Kai Logon Ne Ek ''Travel '' Ek "Power Bank " Naam Ki app Hai starting Mein investment ke Liye Bolte Hain starting 299 Se Fir WO esa claim Karte Hain Ki ₹1.45 Koi 1.85 Par Hour dete Hain Lekin Mere Samjh Mein Nahi aa Raha Ki Mein Invest Karu Ya Nhi Apke Reply Ka Wait Rahega Sir

[@anuragjaiswal7491]

Hello Rishabh, Can I give resignation letter to the company after getting esops. What would be the procedure please guide.

[@mohammedhasham789]

Esop grant letter accept / reject period expired. Will we still get the stock or not?

[@rajatjain7545]

RSUs by US MNC.... Can you make a video on this and it's taxability please. Thank you