Bonus Shares

Bonus shares are additional shares given to the current shareholders without any additional cost, based upon the number of shares that a shareholder owns. 

capitalisation of profits refers to the process of converting profits or reserves into paid up capital.
A company may capitalise its profits or reserves which otherwise are available for distribution as dividend among the members by issuing fully paid bonus shares to the members.
A bonus share may be defined as a free share of stock given to current shareholders in a company ,based upon the number of shares that the share holder already owns
bonus issue is also known as scriptt issue or capitalisation issue

bonus shares are generally given to the existing shareholders in order to capitalise the profits and reserves of the Company ..

what will be  the tax effect for the person who receives the BONUS SHARES

When the person who has received bonus shares will sell such shares.. In respective year he would be taxed under capital gains

Bonus share is any thing extra I.e. free of cost given by employer to employee for some kind of benefit to both I.e. employer and employee