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.
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