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Bonus shares alloted

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(Querist)
09 May 2019 Whether bonus shares allotted should be treated as income or dividend. If treated as income what should be the value whether share price on that date or face value
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CS Advocate Abhishek Goyal

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CS Advocate Abhishek Goyal (Expert)
09 May 2019 In my opinion it will be treated as dividend since one of the method of dividend is to issue fully paid up bonus shares. bonus shares can be issued in lieu of dividend. moreover no income is accruing out of this.
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