📈 Share Incentive Plan Calculator
FAQs
Q1. What is a Share Incentive Plan (SIP)?
A. Share Incentive Plan is a company-sponsored scheme that allows employees to acquire company shares in a tax-efficient way, often with matching or free shares provided by the employer.
Q2. What is the holding period for Share Incentive Plan shares?
A. Typically, shares must be held for a minimum of 3 to 5 years to qualify for full tax benefits, but this can vary by jurisdiction.
Q3. Can I sell my shares early?
A. Yes, but selling before the minimum holding period may result in losing some or all tax advantages, and you might have to pay income tax on the value.
Q4. Who should use this calculator?
A. Employees participating in a SIP, HR managers explaining the plan’s benefits, or anyone comparing investment growth from different contribution levels.