Tax on free debentures received against equity shares

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 April 2015 Hi,

I recd free debentures against equity shares i held in a public ltd co.

I have not sold these shares or the debentures.

Am I required to pay any tax on debentures received.

Also Will Interest received on debentures a taxable income.

pls guide me

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
Follow

04 April 2015 You need not to pay any tax on debenture received. However, interest received on debenture is taxable.

CA Kanj Goel

CA Kanj Goel (Expert)
Follow

04 April 2015 Apart from this as you have transferred shares you have to pay capital gain tax if the shares transferred were sold without paying the stt.

Upgrade to CAclubindia Pro. Subscribe Now!