Date of Acquisition on Bonus Shares

Page no : 2

(Guest)

from the date of allotement for the purpose of capital gain calculations

cost of acquisition will be "NIL"

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Sandeep Pandey (CA FINAL) (1306 Points)
Replied 18 November 2009

Thanks everybody for sharing oponoons..............................

Akshay Garg (consultancy) (59 Points)
Replied 19 November 2009

Date of acquisition - from the date of allotment

Cost of acquisition - Nil

Juzer Sadikot (CA - innovative solutions for Imports and Exports) (1309 Points)
Replied 19 November 2009

Originally posted by :CA Devanshi Gandhi
"	date of allotment is the date on which the shares are issued to the holder i.e when the reserve is transfered to share capital account normally a company sents an allotment advice which mention the date of allotment to the shareholders...and they also mention the cost of the same also for the calculation of the taxation purpose	"

Dear Mam,

M still facing problem in understanding underlined part.

In Income Tax act, allottment is not defined and while refering companies law, I found following;

As per Shree Gopal Paper Mills Ltd. Vs CIT, Central Calcutta, AIR 1970 SC 1750 the Supreme Court held that vesting of bonus shares take place from the date of the company's resolution and not from the date of actual allotment.

Thank for Anticipation,

Regards

Juzer

sakshi taneja (qualified ca n searching job) (341 Points)
Replied 19 November 2009

DATE OF ALLOTMENT SHALL BE TAKEN..........

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CA PRAVEEN KESHAV (CHARTERED ACCOUNTANT) (331 Points)
Replied 19 November 2009

the date of allotment will be date of acquisition for purpose of transfer of Bonus Shares

The Harshit Aggarwal (B.Com(H) ,CS Final) (5278 Points)
Replied 19 November 2009

Originally posted by :Pankaj Loya
"	from the date of allotement for the purpose of capital gain calculations & cost of acquisition will be "NIL"	"

Krutesh Patel (ACA) (727 Points)
Replied 19 November 2009

The date of issue of Bonus shares to be taken.

Sunil (Trader) (2611 Points)
Replied 19 November 2009

Date of allotment. You cannot take date of resolution. An inambiguous situation will arise. If the record date is after the date of resolution and the shareholder sells his shares before the record date, then he would have acquired bonus shares that never ever came in his name.

Juzer, we have still to resolve the taxability of bonus shares in hand of individual and huf after 1/10/2009. What would be the cost in that case. 'Nil' or the tax on IFOS that he suffers.

CA Devanshi Gandhi (Ajani) (FCA DISA Mcom CIFRS & LLB) (9060 Points)
Replied 20 November 2009

Allotment date means, we will get a confimation letter from the company saying that these many shares are alloted to you wef a particular date. I think in demat scenario it directly get credited. but in Olden days where there is gap b/w allotment and the day we receive.

in my case i have received the bonus from glenmark last yr and TCS this yr i hv got the letter of allotment indicating the date, no. of original shares and no. of bonus shares on it.

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Sunil (Trader) (2611 Points)
Replied 20 November 2009

Devanshiji, the allotment letter also indicates date of credit to Demat Account. All Demat Bonus shares I have show date of letter, date of allotment and date of credit the same. Even my demat account shows the same date.