bonus shares

srisara

Member
ragh_ash said:
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

Member
srisara said:
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

Member
ragh_ash said:
hi PANKAJ,
regards
ragh_ash
There is no adjustment for rights. You are purchasing new shares if you apply for the rights

pkjha30

Well-Known Member
srisara said:
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