Mutual fund urgent reply needed

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2015 a mutual fund company is issuing bonus shares to its holders.......now how to calculate capital gain tax on bonus shares when all the units including bonus shares are sold????????????????????period of holding of bonus issue is less than 12 months and hence short term...........pls reply as soon as possible in detail

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 April 2015 the bonus units are valued at Rs Zero. so the whole sale consideration is the capital gain.

Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2015 but in some cases answer is sale proceeds minus nav as on date of bonus and on difference tax is being calculated............is there any explanation for this kind of solution

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 April 2015 in which cases are you refering to? the cost of bonus issue is zero as you dont have to pay anything for it.

Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2015 in ca final sfm book bu a n sridhar there is a problem on mutual fund
original 100 units
bonus added 50 units
nav as on bonus date 12
nav as on date of sale 20
now to calculate STCG on bonus he did 50(20-12)* tax rate

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 April 2015 man, for taxation, refer to tax books instead of SFM books.

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