capital gains

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CA Sharmistha Dan (Querist)
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10 February 2010 Sec 10(38) exempts capital gains on listed securities. Suppose I have purchased 2000 shares, then the company makes a bonus issue of another 2000 shares, then after 2years it makes a second bonus issue of 1000 shares. Will I get the Sec 10(38) exemption for the second bonus issue also?

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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11 February 2010 Yes, but subject to followings conditions:

a) Those shares should earn LTCG.
B) Those shares must have to be transferred through Recognized Stock Exchange.
c) Securities Transaction Tax have to be paid on transfer of these shares.

If above all conditions are fulfilled then exemption will be available u/s 10(38).

Note: Transferred shares to be equity shares of units of equity oriented funds.

Regards!!!