on sale of bonus shares

This query is : Resolved

rahul (Querist)
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05 June 2009 my mother is having a bonus shares for more than 10 years. but during 2008-2009 she sold that shares @ profit of Rs.120000
and her other income is nil. I just wanted to know how much tax she need to pay for the f.y-2008-09

Vipul J. Bhavsar

Vipul J. Bhavsar (Expert)
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05 June 2009 Long term capital gain on shares is exempt from capital gains tax if the transaction has been routed through recognised stock exchange and Securities Transaction Tax (STT) has been paid on it. Also, Basic exemption limit for women who is not a senior citizen is Rs.1,80,000. So the income of your mother is below that, you need not pay any tax.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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05 June 2009 Agree with Vipul sir, Need not to pay any tax if the transaction is made through stock exchange and STT paid as the same is ecempted u/s 10(38). However No STT is paid entire sale proceeds shall be Long term Capital Gain as cost of acquisition of bonus share is is regarded NIL. And after providing exempted limit of Rs. 180000 balance will be taxable @ 20% + EC + SHEC.

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