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bonus stripping u/s 94(8)

HIMANSHU ARORA (ARTICLESHIP) (24 Points)

18 March 2010

Is sec. 94(8) is applicable for sale of shares also?

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CA Shiv (Business Controller) (2987 Points)
Replied 18 March 2010

Hello,

This is something very new and proposed to Income Last month for the Bonus stripping to include in 94(8) soon. It wil be done very soon.

As of now Section 94(8) covers taxation of bonus shares held under the mutual fund units. Thus, bonus equity shares held by individual investors or companies are completely out of the tax net. The department now proposes to extend the coverage to securities.

SO my friend if you have bonus shares and want to take advantage..do it soon or you wil be in tax net sooon...

Shivang