@Quicko
How is the tax calculated on Bonus shares? For eg GMM Pfaudler has given a bonus of 2:1, 2 shares for every one existing share,
Now if the original share is sold, then the purchase price and sale price is calculated and tax is calculated, but in the case of a Bonus what will be the date of acquisition and purchase price to calculate the tax liability?
Fully agree with Zeroindian, recently I sold indian Energy Exchange. The company had issued bonus shares, when the shares are sold on a FIFO method, the profit and loss statement of mine showed the bonus shares cost as zero as against the sale price of 163. Hence the entire amount in my Profit and Loss is showing as profit.
In the case of Bonus shares date of acquisition shall be considered as the record date and the purchase cost shall be zero, so at the time of selling of such shares, total sales consideration is treated as capital gains.