Cairn India co is going to issue me preference shares of face value rs.10 as mentioned in offer. This co is going to merge with Vedanta ltd.As a merging prossess cairn india shareholders are getting 1share of vedanta and 4 preference shares of each face value rs. 10 for one share of cairn india.I am going to get 1000 pref shares. Redemption period is 18 months and dividend on pref share is 7.5 % so my question is what will be the tax treatment on amount received by me after redemption of these pref shares.Here what is the cost of purchase of pref.shares. I think redemption means no STT to be paid. Co may directly purchase from shareholders Read more at: /forum/tax-after-redemption-of-pref-shares-366828.asp
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