Dear Sir
Mr X is holding 250 shares date of purchase 1/1/2008, purchase price Rs 140000/-. Company issued bonus for 1:1 date of allotment 31/12/2010. The Shares original and bonus shares are sold for Rs 220000/- in feb-2011.
If the Bonus share profit is to be considered the cost of acquisition NIL, I would be liable for Tax @ 15% as STCG on Rs 110,000 and on other side I will have to book Long Term Capital Loss on original shares for Rs 30000/-
What is right treatment please guide
CAclubindia
