Treatment of Bonus shares

Dear Sathyanarayan,

Sec 55(2) - Cost of acquisition-

in relation to the financial asset allotted to the assessee without any payment and on the basis of holding of any other financial asset, shall be taken to be nil in the case of such assessee ;]

FMV as on 01.04.1981 can be taken but for that shares must have been alloted before 01.04.1981...

Option 2 is correct.

in the above case then how capital gain will be calculated say 'a' sell 500 share out of above 2200 share. what will be the cost of acqusiton for the same? will it be taken on the basis of FIFO method? 

Dear Vijay Sir,

if shares can be identified like the one held in physical form then gain shall be computed according to fact that from which lot assesee has transferred his shares...

otherwise gain shall be computed on FIFO basis on which shares have entered in the DEMAT Account.