tax treatment of bonus shares
This query is : Resolved
01 July 2011
i am having 100 original shares on that i got 33.33% bonus shares.suppose after 3 year if i sale 30 shares then will it be considered out of original or bonus shares.what will be teatment on sale of fractional bonus shares.please help & explain cost of acquisation and tax treatment on the above cases.
02 July 2011
FIFO system will get applied, 1st the original shares will exit thereafter bonus shares
original shares are at cost price, bonus shares are priced zero
original shares are at cost price, bonus shares are priced zero
02 July 2011
thanks sir for your input
02 July 2011
If you are holding the original shares for more than 1 years the LTCG is exempted and similarly for Bonus share if you hold for more than 1 year then LTCG shall be exempted.
If you holding it physically then you must keep a document that your holding period is more than 1 year and if your are transferring it to your demat account now then also you must keep a document of your holding the share for more than 1 year other wise you will be in trouble.
If you holding it physically then you must keep a document that your holding period is more than 1 year and if your are transferring it to your demat account now then also you must keep a document of your holding the share for more than 1 year other wise you will be in trouble.
03 July 2011
if Period of holding is more than 1 year, any gain on transfer of bonus share will be LTCG.
If shares are listed and STT is deducted, then LTCG will be exempt in the hands of transferor otherwise it will be taxed at 10% / 20% as the case may be.
Cost of acquisition in case of bonus shares acquired after 1/4/81 will be ZERO.
If shares are listed and STT is deducted, then LTCG will be exempt in the hands of transferor otherwise it will be taxed at 10% / 20% as the case may be.
Cost of acquisition in case of bonus shares acquired after 1/4/81 will be ZERO.
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