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Bonus Shares & LT Capital gain

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This query is : Resolved

Tushar (Querist)

12 August 2010 In June 2009, I bought 30 shares of TCS at Rs 760 (Cum Bonus). In June itself, I received 30 shares as bonus.
In July 2009, I sold the original 30 shares ex-bonus at Rs 380. I used this loss of Rs.11,400 to set off against the short term gain in other shares while filing returns.

Now I am left 30 shares of TCS which I am holding for the last 14 months. I want to sell this at current price of Rs.850. The cost of purchase here is zero since they are bonus shares.

Will this transaction be considered as long term gain in share trading? Does that mean I can assume no tax in this transaction?
or do I have to pay tax in this case?

Aditya Maheshwari

Aditya Maheshwari (Expert)

12 August 2010 If shares are held as investment then the sale of these shares will be Long term capital gains and since STT is paid on sale the gain on sale will be exempt u/s 10(38).

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