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?
Guest
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.