The notice mentioned the following.
“According to the company, cancellation of the ‘A’ Ordinary Shares and the consequent issuance and allotment of the Ordinary Shares will be treated as ‘Deemed Dividend’ to the extent of accumulated profits as on the Effective Date and shall be subject to applicable taxes (including deduction/withholding of taxes).”
Can someone explain the meaning of this?
For example,
Tata motors price = 100
Tata motors DVR price = 70
I have100 DVR shares bought at price 50.
So, my capital gain on DVR shares = 20 * 100 = 2000
WIll this 2000 be considered as dividend income?
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