tax treatment of bonus shares
This query is : Resolved
ca_nimisha
(Querist)
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.
U S Sharma
(Expert)
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
ca_nimisha
(Querist)
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.
CA. Krishna K Neeraj
(Expert)
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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- EPF ECR NEW RULES Sep 17th 2026
- Taxation of crypto futures in India Fy 2026- 2027
- Issuing of delivery challan by seller of goods
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
