Query About Issue Of Bonus Shares.

This query is : Resolved 

16 July 2016 Hello, I'm CA-IPCC Student. While Studying Companies Law I Am Very Much Interested In Gaining As Much Knowledge As I Can. The Question Is Why Bonus Shares Are Not Paid In Lieu Of Dividend?

Profile Image

Guest

Profile Image

Guest (Expert)
16 July 2016 If bonus shares are issued in lieu of Dividend,this is a tax evasion of DDT.

16 July 2016 Bonus shares (when issued) increase share capital of the Company i.e. become a part of Share Capital. It is a capitalization of profit. Bonus shares can only be issued out of capital reserves.




You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries