Bonus Shares w.r.t Budget2018 Grandfathering Clause
This query is : Resolved
31 July 2020
Can someone answer the following case?
No. of shares bought: 1
Date of Acquisition: 1/Dec/2012
Cost of Acquisition: 100
FMV (on 31/Jan/2018) as per grandfathering clause: 1000
Bonus Issued (1:1): 1/6/2019, market price becomes less than half
2 shares sold: 31/03/2020
Sale Price: 450
How is the capital gains tax to be calculated on the sale of bonus share?
Is the grandfathering clause applicable? How?
Thanks
No. of shares bought: 1
Date of Acquisition: 1/Dec/2012
Cost of Acquisition: 100
FMV (on 31/Jan/2018) as per grandfathering clause: 1000
Bonus Issued (1:1): 1/6/2019, market price becomes less than half
2 shares sold: 31/03/2020
Sale Price: 450
How is the capital gains tax to be calculated on the sale of bonus share?
Is the grandfathering clause applicable? How?
Thanks
31 July 2020
There will be short term capital gain on the sale of bonus shares. As the holding period was less than 12 months. STCG = Rs. 450 [Sale Price (Rs. 450) - COA (Rs. 0)].
Also grandfathering clause will not be applicable as the bonus shares were received after 31/1/2018. But the clause will be applicable on sale of original shares.
Also grandfathering clause will not be applicable as the bonus shares were received after 31/1/2018. But the clause will be applicable on sale of original shares.
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