Taxability of Bonus Shares

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sanjay (Querist)
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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

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 March 2020 Consider zero cost in respect of bonus shares.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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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.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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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.