You can lower tax burden on sale of Esops in unlisted firms

Employees are allowed some flexibility in choosing a fair market value that helps them reduce their tax burden

If you work for an unlisted company that is doing well and have received shares through an employee stock option plan (Esop), there are chances that stockbrokers may come knocking at your door. As more companies look at initial public offerings (IPOs), high net worth individuals (HNIs) have started picking stocks of unlisted companies, hoping to make a killing when they list. Stockbrokers are approaching employees of unlisted companies to negotiate deals on behalf of their HNI clients.

“This calendar year has been a bumper one for IPOs. The primary market boom is leading to huge demand for shares of