REGARDING LTCG ARISE ON SALE OF LISTED SHARES

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This discussion clarifies the tax implications of bonus shares for Long Term Capital Gains (LTCG) under Section 112A of the Income Tax Act. It specifically addresses whether the grandfathering rule applies to bonus shares issued after the cut-off date of 31 January 2018. The consensus is that the grandfathering rule will not apply in such cases, meaning the sale value of these bonus shares will be subject to long-term capital gains tax.

Amit

Amit (Querist)
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26 March 2021 Assessee Purchased share in march 2016 of ABC company and in march 2018 assessee got bonus shares of XYZ company (issued by ABC company)
What will be Tax Liability under section 112A of income tax act for bonus shares ?? As bonus shares Received after the cutoff date 31-01-2018 . whether Grandfathering rule will apply in that case??