Pl. advise about tax treatment of the amount received for the shares that cannot be issued in full (fractional shares) at the time of:1.Amalgamation(e.g. LTI & Mindtree);2. Issue of bonus shares (e.g. Varun Beverages); and.3. Issue of split shares.If amount received in lieu of fractional shares are taxable,Pl advise under which head of income the amount would be taxed in each scenario and how the said amount would be shown in ITR2 AY 23-24
*As per amalgamated company - LTIMindtree Limited ".. In terms of the applicable tax provisions, distribution of sale proceeds of fractional entitlements shall be construed as "Income in the nature of capital gains" and accordingly applicable income tax shall be deducted at source ('TDS')
There is no TDS obligation in the case of resident shareholders.."
*In similar fashion,sale proceeds of fractional bonus share were remitted into bank account by bonus issuing company without specifying nature of income
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