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Bonus shares + Existing shares sell and LT or ST tax?

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Rajesh

297 Points Posted on 30 August 2025

Respected Members,

A company has alloted me some bonus shares. Let's say I already have 500 for past 3 years and now 500 are alloted now.

So in one transaction if I sell all 1000 now, how is the tax implication from Long Term and Short Term gains pespective?

I mean it will be one transaction by the share broker but if I correctly understand the gain from old 500 shares is LT & other 500 is ST? Correct me if I am wrong.

Please advice.

Thanks and regards.

Replies (2)

Quick Summary

This discussion clarifies the tax implications when selling bonus shares alongside existing ones. If you sell both your original shares and newly allotted bonus shares in a single transaction, the capital gains tax will be calculated separately. Gains from your original shares held for over a year will be treated as Long Term (LT), while gains from the bonus shares will be considered Short Term (ST). Crucially, the acquisition cost for bonus shares is considered zero for tax purposes.