What are restricted stock units?
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Let us understand what are restricted stock units 1. RSUs are company shares granted to employees as part of compensation, but these come with restrictions of vesting over time.2. Employees are not required to pay anything to receive the shares as they are granted for free, subject to vesting.3. RSUs vest over a set period, commonly in annual or quarterly instalments, say, 20% each year over five years. Till such time, employees don't own the shares or have any rights.4. At the time of vesting the market value of RSUs is treated as income and taxed accordingly.5. At the time of sale, the gain or loss after vesting is taxed as capital gain or loss.Content on this page is courtesy Centre for Investment Education and Learning (CIEL).Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta
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Time of India
2 days ago
- Time of India
What are restricted stock units?
Live Events Let us understand what are restricted stock units 1. RSUs are company shares granted to employees as part of compensation, but these come with restrictions of vesting over time.2. Employees are not required to pay anything to receive the shares as they are granted for free, subject to vesting.3. RSUs vest over a set period, commonly in annual or quarterly instalments, say, 20% each year over five years. Till such time, employees don't own the shares or have any rights.4. At the time of vesting the market value of RSUs is treated as income and taxed accordingly.5. At the time of sale, the gain or loss after vesting is taxed as capital gain or on this page is courtesy Centre for Investment Education and Learning (CIEL).Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta
Time of India
2 days ago
- Time of India
What should you do with your annual bonus - save or spend?
Sharmin Adhikari is 35 years old and an interior designer by profession. She is thrilled about her annual bonus and the extra cash she has received, especially during the vacation season. She is tempted to splurge on a dream European cruise with her husband, but also feels the need to save. Torn between indulgence and prudence, she is weighing her options and wants to know what to do. Sharmin Adhikari should start by clearing her outstanding debts. She should begin with credit cards, followed by personal, car and home loans, in this order. Credit cards carry the highest urgency, with interest rates reaching up to 36% annually. While using the bonus to pay off debt is technically spending, it leads to significant monthly savings by cutting down future interest costs. Once the debt is under control, her next priority should be to build an emergency fund, if she doesn't already have one. If Adhikari has already tackled her high-cost debt and has built an emergency fund, she can consider splitting her bonus between saving and spending. After all, she has earned it, and a small, thoughtful indulgence can be a rewarding way to celebrate. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Pensioners Can Buy These Electric Cars in Kuala Lumpur - See Prices Here! Electric Cars | Search Ads Search Now Undo Choosing something that offers lasting value, like a short, affordable holiday, may be more meaningful than splurging on a bucket-list cruise. The rest of the bonus could be set aside for upcoming expenses , such as home repairs, new car, or a short course, or added to her long-term savings for goals like retirement . The things that Adhikari could do with her bonus could be endless. The decision on what to do with a bonus cheque doesn't always have to be a choice between saving and spending. The only caveat is her financial situation. In case there is a debt or a major expense looming, the money might be best saved. Live Events Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Meht a.
Time of India
2 days ago
- Time of India
How can you invest LTCG in Section 54EC bonds?
When an investor sells a residential property and makes long-term capital gains ( LTCG ), the tax liability can be significant. However, the Income Tax Act provides some relief, allowing taxpayers to save on capital gain tax by investing the profit earned in capital gain bonds . These bonds are referred to as Section 54EC bonds . Tax-saving options Capital gain bonds are tax-saving instruments that are issued by entities backed by the government, including REC , National Highways Authority of India (NHAI), Power Finance Corporation (PFC), and Indian Railway Finance Corporation (IRFC). Eligibility To be eligible, the capital gains should arise from the sale of a long-term asset, such as land or a building. The investment must be made within six months of the date of transfer of the property. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An engineer reveals: 1 simple trick to get all TV channels Techno Mag Learn More Undo Investment limit The maximum investment allowed in capital gain bonds is Rs 50 lakh per financial year. The bonds come with a lock-in period of five years and premature redemption is not permitted. The interest rate offered typically ranges between 5% and 5.25% per annum. How to invest Investors can purchase these bonds either online through the websites of issuing institutions or offline via designated bank branches. The required documents include PAN card, address proof, and details of the property sold. The investment must be made from the capital gains portion only, not the total sale proceeds. Live Events Points to note • Capital gains not invested within the stipulated six-month window will be taxable at applicable rate. • Interest earned on Section 54EC bonds is not tax-free and must be disclosed in the annual tax return. Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta
