Mr A has 1000 shares of an Indian company and he transfers this to Mrs A. Company issued bonus shares and Mrs A got 200 shares. Will clubbing provision attract if Mrs A sell these bonus shares?
SANYAM ARORA
(“It's hard to beat a person who never gives up.”)
(20168 Points)
Replied 03 February 2011
Pankaj Arora
(Learner)
(3134 Points)
Replied 03 February 2011
I don’t think that clubbing provision will attracted in transfers of shares.
Alex
(Student)
(62 Points)
Replied 03 February 2011
SANYAM ARORA
(“It's hard to beat a person who never gives up.”)
(20168 Points)
Replied 03 February 2011
Manmohan ACA, CS
(Chartered Accountant )
(14243 Points)
Replied 03 February 2011
No clubbing provision on sale of bonus share but it will be clubbed when actual share are sold
APOORV SAXENA
(Chartered Accountant)
(794 Points)
Replied 03 February 2011
| Originally posted by : SANYAM ARORA | ||
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LET ME EXPLAIN BY GIVING AN EXAMPLE IF MR A TRANFER RS 10000 TO MRS A AND MRS A INVEST THE MONEY IN F.D AND NOW SHE RECIEVES RS 1000 AS INTERST...IT WILL BE CLUBBED IN THE INCOME OF MR A...BUT IF MRS A INVEST THE INTEREST AND RECIEVES INTEREST ON INTEREST ,IT WILL NOT BE CLUBBED |
 |
AGREED !! clubbing provisions shall apply !!
Shweta Bansal
(CA)
(175 Points)
Replied 03 February 2011
| Originally posted by : Alex Thomas Vaidian | ||
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If shares were held by Mr A when bonus shares were declared and then he transfer it to Mrs A and she got dividend(including bonus shares). What is the treatment ??? |
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Dividend is already exempt, so it does not have a tax effect even after clubbing.
Hope this helps.............................:)
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