Bonus Shares

286 views 6 replies
what are bonus shares
Replies (6)
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

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details