Investment accounts (as 13)

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Nirav (Querist)
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20 March 2013 1) Why are Pre-acquisition profits considered as Capital Receipts ?

2) Are Bonus/ Right Shares entitled to receive dividends ?

3) Are Preference Shares included in Fixed Income bearing securities ?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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20 July 2013 As there was no activities of the company the pre-acquisition profit is capital receipt it was decided in many cases.

Bonus right is entitled from the date fo declaration and not before

Yes Preference shares are fixed income bearing instrument.

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