https://www.taxtmi.com/article/detailed?id=12024 Receipt of bonus shares by a shareholder, as capitalization of a company's reserves, is a reallocation of existing corporate funds and not a receipt of property or accretion of wealth for purposes of the provision taxing gratuitous property. Appellate authorities have held that bonus issues do not create fresh value to the shareholder, the market value adjusts proportionately, and additions based on fair market valuation under that provision are unsustainable; cost of acquisition rules treating bonus shares as having nil cost are to be respected. en-us Mon, 06 Nov 2023 10:38:30 +0530 Mon, 06 Nov 2023 10:38:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=12024 Receipt of bonus shares by a shareholder, as capitalization of a company's reserves, is a reallocation of existing corporate funds and not a receipt of property or accretion of wealth for purposes of the provision taxing gratuitous property. Appellate authorities have held that bonus issues do not create fresh value to the shareholder, the market value adjusts proportionately, and additions based on fair market valuation under that provision are unsustainable; cost of acquisition rules treating bonus shares as having nil cost are to be respected. Articles Income Tax Mon, 06 Nov 2023 10:38:30 +0530 https://www.taxtmi.com/article/detailed?id=12024