Tax treatment of amount received in lieu of fractional shares

This discussion explores the tax treatment of amounts received in lieu of fractional shares during company amalgamations, bonus share issues, and share splits. It questions whether these payments are taxable and, if so, under which income head they fall. The content highlights that the Indian Income Tax Act is silent on this matter, and it's neither classified as dividend nor capital gains. One company's statement suggests it's treated as capital gains for tax purposes, while another remitted the amount without specifying its nature.