Date of Acquisition on Bonus Shares

from the date of allotement for the purpose of capital gain calculations

&

cost of acquisition will be "NIL"

Thanks everybody for sharing oponoons..............................

Date of acquisition - from the date of allotment

Cost of acquisition - Nil

Dear Mam,

M still facing problem in understanding underlined part.

In Income Tax act, allottment is not defined and while refering companies law, I found following;

As per Shree Gopal Paper Mills Ltd. Vs CIT, Central Calcutta, AIR 1970 SC 1750 the Supreme Court held that vesting of bonus shares take place from the date of the company's resolution and not from the date of actual allotment.

Thank for Anticipation,

Regards

Juzer

DATE OF ALLOTMENT SHALL BE TAKEN..........

the date of allotment will be date of acquisition for purpose of transfer of Bonus Shares

 The date of issue of Bonus shares to be taken.

Date of allotment. You cannot take date of resolution. An inambiguous situation will arise. If the record date is after the date of resolution and the shareholder sells his shares before the record date, then he would have acquired bonus shares that never ever came in his name.

Juzer, we have still to resolve the taxability of bonus shares in hand of individual and huf after 1/10/2009. What would be the cost in that case. 'Nil' or the tax on IFOS that he suffers.

 Allotment date means, we will get a confimation letter from the company saying that these many shares are alloted to you wef a particular date. I think in demat scenario it directly get credited. but in Olden days where there is gap b/w allotment and the day we receive.

in my case i have received the bonus from glenmark last yr and TCS this yr  i hv got the letter of allotment indicating the date, no. of original shares and no.  of bonus shares on it.

Devanshiji, the allotment letter also indicates date of credit to Demat Account. All Demat Bonus shares I have show date of letter, date of allotment  and date of credit the same. Even my demat account shows the same date.

Please clerify that

What will be the cost of acquisition for bonus shares allotted subsequently ??