Sometimes during corporate actions like demerge, bonus, split etc an amount is received for fractional shares. Could you please advise how it is taxed? Is it SHORT TERM CAPITAL GAIN? If yes it is taxed at 15% or as per income tax slab rate?
22 March 2024
Hi Sir, I have another query on the same issue. In case of demerger , as per COST OF ACQUISITION (COA) the original investment amount is divided into DEMERGED and TARGET Company's Investment Amount. And in case of fractional shares of TARGET Company amount gets credited instead of shares. So I still have confusion if the amount is taxable? If yes whether it is LTCG Tax (10% based on DEMERGED Company's investment more than a year old) or STCG at 15% or as per Income Tax slab rate? Could you please advise?
Could you please explain the term 'LTCG per Income Tax'? Does it go through 10% LTCG Tax? Or is it LTCG but goes through tax rate as per Income Slab rates?
CAclubindia
