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Query About Issue Of Bonus Shares.

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16 July 2016 Hello, I'm CA-IPCC Student. While Studying Companies Law I Am Very Much Interested In Gaining As Much Knowledge As I Can. The Question Is Why Bonus Shares Are Not Paid In Lieu Of Dividend?
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Guest (Expert)
16 July 2016 If bonus shares are issued in lieu of Dividend,this is a tax evasion of DDT.
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CA AJAY KUMAR AGRAWAL

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CA AJAY KUMAR AGRAWAL (Expert)
16 July 2016 Bonus shares (when issued) increase share capital of the Company i.e. become a part of Share Capital. It is a capitalization of profit. Bonus shares can only be issued out of capital reserves.
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