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section 2(22) of I T act 1961
language on section 2(22) use words "to the extent of accumulated profit whether capitalized or not". Does issue of Bonus Shares out of accumulated profits amount to Capitalization of accumulated profit?
Replies (1)
issues of bonus share out of accumulated profits amount to capitalization of profit
BUT,
where a company distributes bonus share to equity shareholders by capitalising its profits, then there is no release of assets and consequently, bonus shares are not treated as dividend.
# for further information please reply
BUT,
where a company distributes bonus share to equity shareholders by capitalising its profits, then there is no release of assets and consequently, bonus shares are not treated as dividend.
# for further information please reply
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