After the Union Budget 2018-19 decided to impose a 10 per cent tax on capital gains on equities, long-term investors receiving bonus shares could end up paying higher long-term capital gains (LTCG) tax. According to the new law, the cost of acquisition of the bonus share should be considered zero when calculating LTCG tax on it. This could lead to an investor paying much higher tax on selling bonus shares.
Assume that a company announces a bonus issue in the ratio of 1:1. The investor gets one share for every share held, which he had purchased for Rs300 some years back. The current ...
TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST Rs
Key stories on business-standard.com are available to premium subscribers only.
Already a premium subscriber? LOGIN NOW
Note: Subscription will be auto renewed, you may cancel any time in the future without any questions asked.
What you get?
ON BUSINESS STANDARD DIGITAL
- Unlimited access to all the content on any device through browser or app.
- Exclusive content, features, opinions and comment – hand-picked by our editors, just for you.
- Pick 5 of your favourite companies. Get a daily email with all the news updates on them.
- Track the industry of your choice with a daily newsletter specific to that industry.
- Stay on top of your investments. Track stock prices in your portfolio.
- 18 years of archival data.
- Requires you to share personal information like date of birth, income, location amongst other fields. This information alongwith your contact information will be shared with the partners associated with this program, who contribute towards subsidizing the offer. By subscribing to this product you acknowledge and accept that our Partners may choose to contact you with offers of their products and services.
- This is an optional offer - Not comfortable with sharing personal data - please opt for the full price offer which requires you to share minimal information