Tax

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?

Replies (8)

yes it will.....CAPITAL GAINS WILL BE IN THE HAND OF MR A

REGARDS - SANYAM ARORA

 

I don’t think that clubbing provision will attracted in transfers of shares.

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 ???

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

No clubbing provision on sale of bonus share but it will be clubbed when actual share are sold 

Originally posted by : SANYAM ARORA

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 !!

Originally posted by : Alex Thomas Vaidian

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 ???

 Dividend is already exempt, so it does not have a tax effect even after clubbing.

Hope this helps.............................:)

Thank you frndzzzzz

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