Scott (Not Applicable) (48 Points)
28 August 2009I purchased 100 shares of company A 2 years back, for 200 Rupees per share. Now 3 months back, the company issued bonus shares. If I sell all the shares (100 original + 100 bonus) at todays market rate of 150, what will be my tax liability ?
Also for bonus shares, what will be date of aquisition - the orginal date of purchase of original shares (2 yrs back) or is it the date that the bonus shares are issued ?
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 29 August 2009
Mr. Scott
In that case cost of acquisition of Bonus share is Nil & date of acquisition is date of bonus shares issued. On thats basis ie. cost of aquisition of bonus shares is Nil, you can calculate the capital gain ............
Hope you have no doubts........
llllVICTORllll
(Internal Auditor)
(511 Points)
Replied 29 August 2009
come on that means he has to pay tax on the whole sale value? there should be some other way of calculating the capital gain
llllVICTORllll
(Internal Auditor)
(511 Points)
Replied 29 August 2009
yes sourabh is correct.. so it would be better if you hold the bonus issue for minimum one year, then sell it, hopefully you get LTCG on sale of shares, provided its a listed one, and STT is being paid for the transfer
CAclubindia
