Tax rule on bonus, split Share

Dear Anuj, I am doing good, thank you! How about you? As regards the shares allotted to you as a gift, the taxability will be in the same manner as it would be in case of shares allotted under the employees stock option plan. When these shares are sold, the capital gains will be computed by taking the price at which the shares were allotted as the 'cost of acquisition'. If you hold these shares for more than 12 months, the gains will be considered as Long Term Capital Gains. If you are liable to pay STT at the time of sale of shares on a recognized stock exchange, then the LTCG shall be exempt from tax. The exempted LTCG should be disclosed in your income-tax return to be compliant from a reporting perspective. If you are not liable to pay STT, say, if the shares are sold off-market, then LTCG should be taxed at 20.6% (inclusive of education cess). If the STT is liable to be paid at the time of sale, STCG will be taxed at flat rate of 15.45% (inclusive of education cess). Additionally, surcharge, if applicable will have to be applied. However, if STT is not payable, then STCG shall be taxable at the applicable individual's tax slab rate.  Suggest to you kindly contact a CA as well.    

Thanks Sreekanth. I am doing good too. So this is applicable for bonus share or split shares as well? Means, If shares are sold via recognized share broker website (DMAT account) in NSE after 12 months of receiving share in DMAT, it will fall in LTCG and STT will be paid at the time of sale of shares. One only need to make sure to report LTCG in ITR properly. Is this correct?  Thanks, Anuj

Dear Anuj, You may kindly go through below article on - 'Calculation of capital gains on Split / Bonus shares..'