Sales of bonus shares

This query is : Resolved

NK1976

NK1976 (Querist)
Follow

10 March 2017 I Purchase ONGC 1000 Shares @399/-total value Rs.402010/- on 17.10.2014 & Now ONGC issue Bonus Shares 1:2 Ratio. After the bonus issue Total Shares with me 1500 Qty and sales on 20.1.17-1500 Qty. Than How to Count Long Term Capital Gain & Short Term Capital Gain on sales of shares.

Thanks

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
Follow

14 March 2017 First of all, ONGC is a listed company and on sale or purchase on shares of listed companies security transaction tax is levied. Taxability of shares/securities on which security transaction tax is levied are as under :-

Long term Capital Gains - Expemt under section 10(38)
Short term Capital Gains - Taxable @ 15% as per section111A

Original Shares : Period of holding of original shares is considered as long term because shares are held for more than one year (17.10.2014-31.03.2017) and there will be long term capital gains which are exempt.

Bonus Shares : If bonus shares are allotted after 21st January 2016, there will be short term capital gains taxable @ 15%