capital gain on bonus share
This query is : Resolved
06 January 2011
Dear all,
I m having 100 shares in a pvt ltd co. owned from 2003-04 allotted me @ 10/- per share and in the current fin year, the co allotted me 200 bonus shares. book value before issue of bonus share was Rs.50 and after bonus is 16.67. I want to sell all share @ 16.67 per share. what will be my position u/s 56(2)(vii) and capital gain for original allotment and bonus share.
Your urgent reply shall highly be apprecated.
Thanks in advance
I m having 100 shares in a pvt ltd co. owned from 2003-04 allotted me @ 10/- per share and in the current fin year, the co allotted me 200 bonus shares. book value before issue of bonus share was Rs.50 and after bonus is 16.67. I want to sell all share @ 16.67 per share. what will be my position u/s 56(2)(vii) and capital gain for original allotment and bonus share.
Your urgent reply shall highly be apprecated.
Thanks in advance
06 January 2011
56(2) applies to buyer and not seller and if sold at book value as certified by CA or a merchant banker then 56(2) has no application.
Old shares will be LTCG taxable @ 20% after indexation benefit & new shares would be STCG taxable at slab rates.
Old shares will be LTCG taxable @ 20% after indexation benefit & new shares would be STCG taxable at slab rates.
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