Capital Gain LT or ST

Bonus shares short term as held for less than 12 months.

If the company had split the shares then it would have long term

Dear Balaji,

I hope this is not another one from ur magic box............:))

Look there is Board Circular on his, if u shares are in Demat Form & the Bonus shares have been credited to the same Demat A/c in which original shares are lying, then calculation has to be made on FIFO Basis & u cannot say that u have sold Bonus shares First.. Therefore it will be treated as Long term on the believe that original shares were sold...

However if Shares are in physical form or Bonus shares have been creited to a separate Demat a/c i:e u can easily distinguish then it will be treated as Short Term...  

I have expressed my view as balaji has specifically mentioned bonus shares were sold. If shares sold normally then what amir says is correct

By applying FIFO Basis as per circular, Bonus Share transfer will be consider for STCG

Here s the Case law....

Commissioner of Income tax vs. Chunilal Khushaldas [1974] 093 ITR 0369. (Gujarat High Court)

Held by the High court that Bonus share sold on 1.6.2007 were Current Asset within the meaning of sec 2 (42A) as they were not held by the assessee for more than 12 months....so STCG???

Originally posted by : Amir
	Dear Balaji, I hope this is not another one from ur magic box............:))

yes he have a large collection of tricky que... i love to see answers for them

no not many...... friends.... only very very little.....but will definitely post everything here......