Capital gains tax on shares

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Chitra Nair (Querist)
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01 December 2010 What will the consideration in case of bonus shares? How will the capital gains be calculated on the same?

What will the consideration in case of Transmission of shares? How will the capital gains be calculated on the same?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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01 December 2010 cost of bonus shares is zero. So cost of acquistion for shares will be zero for computing capital gains.

I dont think there is any consideration in case of transmission of shares as the same is done free.

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Chitra Nair

Chitra Nair (Querist)
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01 December 2010 Does that mean that the entire amount on the transfer of the transmitted shares will be taxable? Wont the cost to the previous owner be considered?

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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01 December 2010 No cost to the previous owner will now be the cost of the owner.

Chitra Nair

Chitra Nair (Querist)
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01 December 2010 Ok. Thanks a lot Mr. Aditya.