TVS Holdings issued as bonus to shareholders of TVS Motors as part of scheme of arrangement of non-convertible redeemable preference shares with coupon of 9%, The same were redeemed within a year and the principal value as well as interest were paid to registered holders after deducting TDS on the full amount of principal and interest.
What is the tax treatment in an individual holder on receipt of the said amount?
Can the said preference shares be considered as long term capital gains?
Sorry the bonus non-convertible redeemable preference shares were issued to shareholders of Sundaram Clayton and not TVS Motors
Further as per the terms of issue the same were to be redeemed in 12m but due to bank holidays they redeemed the same earlier resulting in holding of less than 12 months
Sorry for inconvenience
In my view, it should be considered as Dividend
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