Tax on free debentures received against equity shares

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 April 2015 Hi,

I recd free debentures against equity shares i held in a public ltd co.

I have not sold these shares or the debentures.

Am I required to pay any tax on debentures received.

Also Will Interest received on debentures a taxable income.

pls guide me

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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04 April 2015 You need not to pay any tax on debenture received. However, interest received on debenture is taxable.

CA Kanj Goel

CA Kanj Goel (Expert)
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04 April 2015 Apart from this as you have transferred shares you have to pay capital gain tax if the shares transferred were sold without paying the stt.