Home > Money > Question

Sign In | Create an account

Language:

Now in हिन्दी too

Need Expert Advice?Our Gurus Can Help

Will I Pay Tax on My Bonus Shares?

Samraat Jadhav |2319 Answers |Ask -Follow

Stock Market Expert - Answered on Sep 03, 2024

Samraat Jadhav is the founder of Prosperity Wealth Adviser.
He is a SEBI-registered investment and research analyst and has over 18 years of experience in managing high-end portfolios.
A management graduate from XLRI-Jamshedpur, Jadhav specialises in portfolio management, investment banking, financial planning, derivatives, equities and capital markets.... more

Asked by Anonymous - Sep 02, 2024Hindi

Listen

Money

Hello sir, 1. How bonus shares are treated for tax for individuals ? How the value is calculated? 2. How the shares alloted free after de-merger to be treated and what value should we take? Thnx

Ans: tax treatment will be same as your buy value of bonus share will be zero so zero minus the sell price will be your capital gain

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

MoneyReply

You may like to see similar questions and answers below

Anil Rego |388 Answers |Ask -Follow

Financial Planner - Answered on Jun 14, 2022

Question by Ganesh - Jun 14, 2022Hindi

Listen

Money

I have following queries: 1) I want to sell Bonus Shares received prior to January 31, 2018. What will be their acquisition cost? Will grandfathering provisions be available?

Ans: LTCG of these Bonus shares shall be calculated by considering FMV (Fair Market Value) on 31/01/2018. Grandfathering provision is available here.

T S Khurana |480 Answers |Ask -Follow

Tax Expert - Answered on Nov 29, 2024

Asked by Anonymous - Aug 30, 2024Hindi

Listen

Money

Hello sir, just wanted to know abt the tax status in case of bonus issue. For example, RIL will be giving bonus shares @1:1 as decided in AGM. So, how these sahres' value will be treated? Whether there will be capital gain? Short term or long term? What value to be considered of these shares for calculating profit? Thnx

Ans: 01. Value of Bonus Shares shall be treated as zero/nil to work out Capital Gain.
02. Tax liability will be there only when you sell the shares. On allotment there is no Tax Liability.
03. Whether it is LTCG or STCG depends upon the period you holed there shares. More than one year holding period will shift the gain to Long Term instead of Short term.
Most welcome for any further clarifications. Thanks.

Milind Vadjikar |1238 Answers |Ask -Follow

Insurance, Stocks, MF, PF Expert - Answered on Sep 06, 2024

Question by Deepak - Sep 01, 2024Hindi

Listen

Money

I had 100 shares of Motilal Oswal Financial Services as on June 1, 2024. They announced 3:1 bonus issue with a record date of June 10, 2024. How should I treat my share holding for Capital Gains purpose at the time of selling these shares in part lots : a.100 shares @ the original share purchase rate and 300 shares at NIL rate? b. 400 shares each @ 1/4th of the original purchase price? Need clarification in this regard.

Ans: Option a. As mentioned in your question is the way how it would be looked at, from capital gain tax perspective (100 shares at original price & date of purchase & 300 shares at zero price with date of allotment as reference for determining LT or STCG)

Milind Vadjikar |1238 Answers |Ask -Follow

Insurance, Stocks, MF, PF Expert - Answered on Sep 06, 2024

Asked by Anonymous - Sep 02, 2024Hindi

Listen

Money

Hello sir, i hv 2 questions: 1. RIL will be issuing bonus shares. How these bonus shares to be shown in our tax returns? Whether to be treated as capital gains? What will be the value of share? 2. RIL has made seperate entity of Jio Finance. Given shares 1:1 to its share holders. How these are to be accounted for? What value should we consider of each share to calculate profit, when we trade these shares? Thnx

Ans: Issuance of bonus share does not invoke any tax liability. It is treated as shares acquired on date of allotment at zero price. Whenever you sell these bonus shares the LT/ST CG liability will come into play based on your holding period. Regarding Jio Finance demerger from RIL, it was a part of RIL business which they have now separated therefore for eg. if your buy price of RIL share is Rs.100 per share then you need to apportion this cost between the two after demerger, in the ratio as communicated by RIL to regulators, and record that as your cost of these shares on the date you purchased original RIL shares. Let's say it is 95 & 5 so your acquisition cost of RIL share shud be shown as 95 and cost of acquiring Jio Finance share as 5. Sounds like lot of calculations but if you deal in shares you must have a habit of physical/digital record keeping. Also LT/ST count for Jio Finance shares will be from the same date as you bought original RIL shares and not the date of demerger. Hope this helps.

Latest Questions

Dr Dipankar Dutta |1549 Answers |Ask -Follow

Tech Careers and Skill Development Expert - Answered on Jun 10, 2025

Question by Kundan - Jun 06, 2025

Career

My son want to do BBA. In Delhi JIIT, Bharti Vidyapeeth, Christ , SRM which one is better?

Ans: Christ University

Prof Suvasish Mukhopadhyay |1136 Answers |Ask -Follow

Career Counsellor - Answered on Jun 10, 2025

Question by Pavii - Jun 09, 2025

Career

Hello sir i got 254 rank for msc integrated food science and technology in VIT will i get seat in vellore campus

Ans: With a rank of 254 in the VITEEE exam for the Integrated M.Sc. in Food Science and Technology, you have a high probability of securing a seat in the Vellore campus. Given your strong performance, you are likely to be admitted under Category 1 or 2.

Dr Nagarajan J S K |929 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Jun 09, 2025

Question by Swapan - Jun 09, 2025

Career

Sir good morning I may get 413 in NEET. Is there any possibility to get admission at nursing course in any AIIMS.

Ans: Hi Swapan,
NEET - Nursing?
Extract from neet 2025 bulletin.

13.5 Use of the Result of NEET (UG) - 2025 by other Organizations
The Result of NEET (UG) - 2025 MAYBE utilized by other Entities of Central and State Governments, in accordance with their respective eligibility criteria / other norms /applicable regulations/guidelines/rules. The result data will also be utilized for B.Sc. (H) Nursing courses in accordance with their respective eligibility criteria / other norms /applicable regulations/guidelines/ rules.
The NEET (UG) - 2025 data will also be used for admissions to BVSc & AH
courses under the 15% quota of VCI in recognized Veterinary Colleges.
However, the Council has to approach the MCC of DGHS, MoHFW in order to obtain the said data of results.

Kindly note that AIIMS released the rank list for BSc Nursing (H) - details follows.

ALL INDIA INSTITUTE OF MEDICAL SCIENCES, NEW DELHI
AIIMS-B.SC. (H) NURSING ENTRANCE EXAMINATION – AUGUST 2025 SESSION HELD ON 1st June, 2025
RESULT NOTIFICATION NO. 79/2025
B.Sc. (H) Nursing Entrance Examination-August 2025 Session
Dated: 06.06.2025
The following is the Roll Number wise list of all qualified candidates who have appeared for AIIMS B.Sc. (H) Nursing Entrance Examination – 2025 held on 1st June 2025 and are provisionally eligible for the Mock Round/1st Round of Seat Allocation.

If you to pursue Nursing course at AIIMS, So act quickly....

Dr Nagarajan J S K |929 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Jun 09, 2025

Asked by Anonymous - Jun 02, 2025

Career

I gave my neet first time this year I was preparing for it in naryana cllg for 2 years i mean it wasn't that serious there was preparation of boards+ neet and I wasn't that serious I'm scoring 203 which is really bad i didn't study anything in the last 3 months i didn't even touch my book before neet due to personal issues at home I was very occupied by it honestly had no time to study i had just given up. Do you suggest I take a drop. Iuse to score avg marks not in mocks not too low not to high

Ans: Yes. You can take a drop. But prepare for NEET without any distraction So that you win in a game.

Dr Nagarajan J S K |929 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Jun 09, 2025

Question by Saisujay - Jun 09, 2025

Career

Hi sir I got 270 marks in neet 2025 and I am Karnataka domicile can I get semi government seat for 3AG category

Ans: HI Sai,
No Guarantee.
To get more clarity wait till 14th.

Dr Nagarajan J S K |929 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Jun 09, 2025

Question by Karthik - Jun 09, 2025

Career

I had got 8766 ews rank can i got nit aero space

Ans: HI Karthik,
Little challenging.
Try with less competitive NITs

Dr Nagarajan J S K |929 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Jun 09, 2025

Asked by Anonymous - Jun 09, 2025

Career

I calculated my NEET 2025 marks and it turns out to be at 575 after they key release. What is the probability of getting into AFMC ?

Ans: HI,
Did you gone thru the rules and regulations of AFMC? If not, kindly go thru the same.

Dr Nagarajan J S K |929 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Jun 09, 2025

Asked by Anonymous - Jun 09, 2025

Career

Sir, Rank 6626 in SAEEE 2025(Sathyabama college of Engineering).What is the possibility of a B tech Biotechnology seat under open category?

Ans: HI
Better discuss with sathyabama team. Don't waste time.

Dr Nagarajan J S K |929 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Jun 09, 2025

Question by anchal - Jun 09, 2025

Career

Goodbye evening sir , im scoring 330 marks in neet 2025 in 3 drop year , could you plz guide to ehatto do next , is I'm getting any government college??

Ans: HI Anchal,
BDS in private colleges is possible.

Dr Nagarajan J S K |929 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Jun 09, 2025

Asked by Anonymous - Jun 09, 2025

Career

Getting 581 marks in NEET 2025 as a general male from Rajasthan. Expected rank and college? Please tell expected rank

Ans: Hi
Maybe 11k to 13k.

See more questions »

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Video Reply
Audio Reply

WhatsApp
Facebook
Twitter
Copy link

Delete

Close

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus

Sign up

email

uname

mobile no

Country Code

Mobile number

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

LOGIN

x