bonus shares not taxable under Section 56(2)(vii)(c)

By | July 10, 2016

Allotment of bonus shares

The Bangalore Bench of the Income Tax Appellate Tribunal held that bonus shares cannot be considered to be as received without consideration or for inadequate consideration and, therefore, are not taxable under Section 56(2)(vii)(c) of the Income-tax Act, 1961. The case is: Dr. Rajan Pai. Read a June 2016 report [PDF 350 KB]

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