Capital gains incidence due to bonus shares

• File ITR on time to carry forward the ₹3,32,200 LTCL for up to 8 years against future LTCG.

• Perform Tax Loss Harvesting if holding other appreciated long-term assets to absorb the LTCL immediately.

• Offset the STCG of ₹2,74,800 using any other short-term losses incurred during the current financial year.

Yes you calculations are fine for the facts. It’s possible to take the LTCL in the existing shares & there could be an STCG in 4000 bonus shares having Nil cost of purchase, as their date ofpurchase is different. As per the Income Tax Dept., bonus shares acquired on or from Apr 1, 2001 will generally have an acquisition cost of Nil.

The actual action may be as follows:1. Carry forward 3.32 lac LTCL by filing ITR within due date. Use against future LTCG. 2. STCG on 2.75 Lac will only be offset against STCL.

The set-off restriction you described is real and one of the more counterintuitive parts of capital gains taxation.

WHY THIS HAPPENS: Bonus shares have zero acquisition cost by statute. The parent shares (bought Jun 2024, sold Jul 2025) have a 13-month holding period, making any loss on them a Long-Term Capital Loss (LTCL). LTCL can only be set off against Long-Term Capital Gains (LTCG), not against Short-Term Capital Gains (STCG) from the bonus shares or from any other STCG source.

WHAT TO DO:

1. File ITR-2 on time and correctly disclose the LTCL under Schedule CG. A filed LTCL can be carried forward for up to 8 assessment years and set off against any future LTCG (listed shares, unlisted shares, property, anything).

2. If you have other long-term assets with unrealized gains this FY (mutual funds held over 12 months, other shares, property), consider realizing them before March 31 to generate LTCG and consume the LTCL in the same year, saving up to 12.5% tax on the realized LTCG.

3. Do not ignore the STCG tax liability. Pay advance tax or self-assessment tax to avoid Section 234B/234C interest.

For full worked examples of bonus share capital gains computation and ITR-2 disclosure requirements, this [guide on listed share STCG and LTCG for AY 2026-27](https://taxgarden.in/blog/income-tax-on-sale-of-listed-shares-stcg-ltcg-india-ay-2026-27) covers the zero-cost rule for bonus shares.