How profits made on shares listed on Nasdaq under ESOP are taxed?
Profits from the sale of shares allotted through ESOP schemes are taxable in India as long-term capital gains, with a 20% tax rate after indexation. Short-term gains are taxed at the individual's slab rate
Question: I am an Indian resident employed with an Indian subsidiary of a US-based parent company listed in NASDAQ. The parent company has provided us with shares through ESOP schemes. Will the profits made on the sale of these shares be taxable in India? If yes, what are the holding period requirements for short-term and long-term capital gains and the tax rates for short-term and long-term gains in this case? Can we take the benefit of cost inflation indexation here?