Taxability of Bonus Shares
This query is : Resolved
07 March 2020
Sir
I would like to take advise on the taxability of Bonus shares.
I had purchased shares of Reliance petroleum ltd @1744/ but it has been converted in Reliance Industries and issued 224 shares. In 2009. It has given 224 shares as bonus in 2010. What will be purchase price.? I have sold 448 shares in 2020. How the capital gain be calculated.
Pl advise.
Regards
I would like to take advise on the taxability of Bonus shares.
I had purchased shares of Reliance petroleum ltd @1744/ but it has been converted in Reliance Industries and issued 224 shares. In 2009. It has given 224 shares as bonus in 2010. What will be purchase price.? I have sold 448 shares in 2020. How the capital gain be calculated.
Pl advise.
Regards
08 March 2020
Consider zero cost in respect of bonus shares.
08 March 2020
The cost of acquisition of the converted shares shall be deemed to be the cost paid for the shares of Reliance Petroleum Ltd.
08 March 2020
Capital gains is to be computed u/s 112A of the Income tax Act,1961. The methodology ,in brief, is as under.
Capital gain = Sale value minus revised cost of acquisition
Revised cost of acquisition is :-
1. the higher of the actual cost of acquisition and
2. lowest of :-
* fair market value as on 31-01-2018,
* full value of the consideration.
Capital gain = Sale value minus revised cost of acquisition
Revised cost of acquisition is :-
1. the higher of the actual cost of acquisition and
2. lowest of :-
* fair market value as on 31-01-2018,
* full value of the consideration.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Confusion around Form 26QB fields
- Tds on building rent monthly
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- RCM INVOICING FROM NOV-2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- TDS under section and rate of TDS
- GST input on scooter purchased
- TDS under section 194Q and TCS under section 206C
- GST input on car insurance and repairs
- GST input on Diwali gift to employee
- GST input on Mobile Handset
- Material and freight in same invoice
- TDS under section 194J inclusive of reimbursement of expenses
- TDS on Material and Labour in same invoice
Trending Online Classes
CAclubindia
