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issue of bonus shares

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(Querist)
04 March 2011 if a private company has never paid any dividend to its shareholders and it issues bonus shares then does it attract any complications or any tax liability
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Sunil Kr. Sanganeria

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Sunil Kr. Sanganeria (Expert)
04 March 2011 No complication. It is not necessary that company has to declare dividend before issue of bonus shares.

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