bonus shares

srisara · #11 19th April 2006, 03:15 PM

Quote:

Originally Posted by ragh_ash

hi PANKAJ,
while on topic of Bonus shares can u clarify the following:
In FCharts , the software gives a facility for entering data for stock split and i have done same and updated my data. but the problem is when Stock is split and also gives bonus shares at same time. how does one adjust for it.
also how to adjust for rights
regards
ragh_ash

it is one and the same. here bonus shares means no new share is given. instead, if u hold 1 share @100, it will become 2 shares @50. So, you can still go for Stock Split funct. in Fcharts.

Satya

rvgandhi · #12 19th April 2006, 03:22 PM

Quote:

Originally Posted by srisara

it is one and the same. here bonus shares means no new share is given. instead, if u hold 1 share @100, it will become 2 shares @50. So, you can still go for Stock Split funct. in Fcharts.

Satya

From a taxation point of view it is 1 share @ 100 and 1 share @ 0

rvgandhi · #13 19th April 2006, 03:24 PM

Quote:

Originally Posted by ragh_ash

hi PANKAJ,
how to adjust for rights
regards
ragh_ash

There is no adjustment for rights. You are purchasing new shares if you apply for the rights

srisara · #14 19th April 2006, 03:42 PM

Quote:

Originally Posted by rvgandhi

From a taxation point of view it is 1 share @ 100 and 1 share @ 0

r u sure? i think on every share there is a capital gains Tax except for IPO's. Please correct me if i am wrong.

Satya

pkjha30 · #15 19th April 2006, 08:10 PM

Quote:

Originally Posted by srisara

r u sure? i think on every share there is a capital gains Tax except for IPO's. Please correct me if i am wrong.

Satya

Hi satya

what rvgandhi ie telling is right. its one share @100 and oneshare@0 for taxation.

If your transaction is with transaction tax and with stock exchange then for short term capital gains tax @ 10 % is charged(if not treated as business income) and Long term capital gains tax @ 0%. Two conditions of transaction tax and through exchang must be met.

As for split in FCharts I dont know much.But simple math should do the trick

If you have 1 share and one bonus share is given and stock is split into 5 shares of Rs. 2 each then

You will have 5*(1+1)=10 shares after bonus and split..
Cost of acquisition will be cost of one share divided by 10.

But for tax purpose one share will be treated as sold(when splitted) and tax will be imposed at the applicable rate depending on period of holding. Sale will be treated as on record date.

Cost of acquisition for others will be treated as nil and for that tax wil be at the time of sale only subject to above conditions.

If I am wrong I may be corrected.

Pankaj

srisara · #16 19th April 2006, 09:17 PM

Quote:

Originally Posted by pkjha30

Hi satya

You will have 5*(1+1)=10 shares after bonus and split..
Cost of acquisition will be cost of one share divided by 10.

Pankaj

thanks pankaj,

also, when u split the share, dont forget to multiply the Volume.

Satya

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