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Capital gains on shares

nitin (partner) (72 Points)

25 February 2015

Hello,

I had bought 200 shares of mindtree in september 2013. company announced bonus in july 2014 and i sold the shares in feb 2015. please advise -

1.long term capital gains will be on 400 shares incl 200 bonus shares or only 200 original purchased shares ?

2.bonus shares people say cost is zero ? If so the entire amount of bonus shares will be taxed at 15% ?

3.Can i club the short term gains with my other income which is only residential rent and claim the basic exemption limit ?

4.If i have to pay the short term capital gains tax then do i have to pay advance tax for the said amount ?

kindly reply.

Thank You,

Nitin Agrawal

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2 Replies

CA Sayli Jain (CA) (173 Points)
Replied 25 February 2015

short term capital gain on entire shares which you sold.

Cost of bonus will be zero

Short term capital gain will be taxed @ 15%

Regards,

CA Sayli Jain

sayli12345 @ gmail.com

shikhar (LEARNER ) (1394 Points)
Replied 25 February 2015

Hello Nitin ji.

In case of shares, If period of holding is more then 12 months then capital gain arise is exempted.

As per your query..

(1) On original 200 shares period of holding is more then 12 months, so their will be no capital gain. But in case of bonus shares period of holding is taken from date of issue of bonus share, whiich is less then 12 months------- it will be taxable as short term capital gain.

(2) yes cost of bonus share is zero, it will be tax @ 15% if your total income exceed maximum amount to be taxed (for example 2,50.000 in current year)

(3) yes you can club it with other income and claim basic exemption (but basic deduction is first given to other income then later on with capital gain)

(4) if your total tax excced Rs 10,000 then you are liable to pay advance tax

Thanks