Retiring with ESOPs? Avoid High Tax on Foreign Shares with Smart Planning

• Learn how to reduce tax liability on foreign ESOP shares, especially when planning for retirement.
• An employee with ESOP shares in a foreign-listed company can transfer holdings to a personal demat account.
• Foreign shares are considered unlisted for tax purposes and become long-term capital assets after 24 months.
• Short-term capital gains on unlisted shares are taxed at slab rates (up to 40% for high earners).
• Long-term capital gains on unlisted shares are taxed at a flat 12.50%, making timing crucial for tax savings.
• Transferring shares between demat accounts has no tax implications; it's advisable to do so for future flexibility.