How to minimize tax outgo when we receive bonus shares.
Say I have a company’s share at holding price 25. Now it is trading at 100 and the company issued 1:1 bonus share. The price will now become 50 and I will hold 2 shares.
If I was holding the share for more than a year then my LTCG will be 25 and the STCG is 50, if I sell them both. Total tax is 10 (2.5 + 7.5).
Had there be not a bonus issue my tax would have been just 7.5.
How do people deal with such situations?
Subscribe To Our Free Newsletter |