BONUS SHARES CAN CREATE TAX LIABILITY EVEN WHEN YOUR ACTUAL PROFIT IS SMALL!

Bought 100 shares @ ₹1,000 on 08-03-2024
Received 100 bonus shares on 05-06-2025
Market price after bonus: ₹600
Sold all 200 shares @ ₹610 on 24-06-2025

✅ Actual Economic Gain: ₹22,000

✅ Taxable STCG on Bonus Shares: ₹61,000
💰 Tax Payable: ₹12,688

Why? 🤔

Because Bonus Shares have NIL cost u/s 55(2)(aa) and the LTCL of ₹39,000 on original shares cannot be set off against STCG.

Tax Concept is a dedicated team of financial writers, legal analysts, and tax professionals committed to breaking down complex Indian corporate updates. From real-time GST amendments and crucial Income...

Join the Conversation

3 Comments

  1. Reply
  2. Reply
  3. Reply
Leave a comment

Reply