bonus shares issued to preference share holders is deemed dividend u/s 2 (22) (b) what is the status if it is issued to equity shareholders..???.plz suggest...
Prachi Jindal (CA-Article-Final-Student) (129 Points)
06 October 2010bonus shares issued to preference share holders is deemed dividend u/s 2 (22) (b) what is the status if it is issued to equity shareholders..???.plz suggest...
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 06 October 2010
Dear Prachi,
It is taxed as CG at the time of sale. Howevr, Cost of Acquistion is NIL for the purposes of CG
CAclubindia
