Itr2 - income reporting query

This query is : Resolved

Peeyush (Querist)
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01 July 2019 I am an NRI . Recently Wipro had announce bonus 1:3 ratio. I had 200 shares which made my share as 66.66 so I received 66 full shares and got Rs175 as fractional bonus trust entitlement for the 0.66 portion. I got 147 in my account after deduction of 28 Rs TDS. I am filling ITR2. I have following queries.
1. whats the taxation angle on this fractional bonus cash that I received? someone told me the fractional bonus price if paid as part of bonus trust is not taxable. please advice if this is correct as the TDS has been deducted on same.
2. Where do I need to report this income in ITR2? which section?
3. While claiming TDS deducted for this fractional bonus in ITR2 now you need to mention the gross value and choose the type of income from a drop down menu. the options are income from other sources/Capital gains/exempt income. which one do I select for this fractional share payment?

Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 July 2019 1 It's taxable.
2 Report the income under capital gains short term.

Peeyush

Peeyush (Querist)
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02 July 2019 Thanks a lot Mr Seetharaman,

how do I arrive at the aqusition value and calculate the STCG. I had aquired the original shares in dec 2014 and since then bonus has been declared twice first 1:1 on June 13 2017 and again 1:3 on March 6 2019. this fractional share cash got credited on 7th March 219.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 July 2019 Cost of acquisition for bonus shares is nil so treat the entire amount received with TDS as capital gain.

Peeyush

Peeyush (Querist)
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05 July 2019 Thanks again for your reply. While updating the Capital gains section in ITR2 there is one more confusion regarding this bonus credit share deposit in my account. Has Wipro credited this amount to me after paying STT ? how much will be the STCG tax in this case?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 July 2019 Yes Wipro credited this amount to you after paying STT. STCG is Rs 175.

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