Bonus Share recd. taxability as per income tax
This query is : Resolved
Harish Chandra
(Querist)
06 March 2011
I want to ask you about taxibility of Bonus share recd. above Rs. 50000 under income tax act 1961,
I read " as per section 56 "any Property ( Share and Securities) recd. without consideration , the Aggregate FMV of Which exceeds Rs. 50000 from every person, then the whole of the aggreage FMV will be taxable for Reciever.
So suggest me that Is it taxable under sec. 56 or not
I read " as per section 56 "any Property ( Share and Securities) recd. without consideration , the Aggregate FMV of Which exceeds Rs. 50000 from every person, then the whole of the aggreage FMV will be taxable for Reciever.
So suggest me that Is it taxable under sec. 56 or not
CA PARAS BAFNA
(Expert)
06 March 2011
In case underlying shares are held as stock in trade, Section 56(2)(vii) is not attracted.
In other cases it will be treated as income on the basis of market value where aggregate market value of all such shares received under bonus issues exceeds Rs. 50000/-.
In other cases it will be treated as income on the basis of market value where aggregate market value of all such shares received under bonus issues exceeds Rs. 50000/-.
Harish Chandra
(Querist)
27 June 2011
Thankyou paras
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