Bonus shares

This query is : Resolved

Shailendra (Querist)
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06 April 2013 I have 100 Units of Mutual Funds costing Rs. 150000/- as on 15.12.11 and after that I have received bonus units 50 on 18.03.12. I sold 80 units on 28.03.12. What cost I should take for Accounting purpose.

For tax it should be on FIFO basis and cost shall be Rs. 120000/- (Rs. 1500 x 80) but for Accounting purpose as per AS-13 it should be Rs. 80000/-.

Whether Rs. 80000/- or Rs. 120000/- please advise.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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28 May 2013 No in FIFO method you cannot pick and choose. First it will be out of 100 units @ 150/- and after the 100 units are totally sold the cost of Bonus units shall be taken at Zero which means you have to hold the bonus unit for more than 1 year to get 100% exemption

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