Bonus Stripping Transaction - (New) Section 175(9) & (10) / (Old) Section 94(8) ]

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.... Condition Requirement Purchase before record date The taxpayer purchases or acquires securities or units within three months before the record date. Receipt of additional securities On the record date, the taxpayer receives additional securities or units (bonus securities/units) without making any payment. Sale of original securities The original securities or units are sold within nine months after the record date, while the taxpayer continues to hold all or part of the additional securities or units. If these three conditions exist simultaneously: • any capital loss arising from the sale of the original securities or units shall be ignored while computing taxable income. The provision ....

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....d Repeal) Act, 2002 (58 of 2002); • (B) "specified company" means a company as referred to in clause (h) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002); or • (iii) a business trust defined in section 2(21); or • (iv) an Alternative Investment Fund defined in regulation 2(1)(b) of the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992 (15 of 1992),  for the purposes of entitlement of the holder of the securities or units to receive dividend, income, or additional securities or units without any consideration; "Secu....

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....securities or units referred to in clause (b), then (i) the loss, if any, arising to him on account of such purchase and sale of all or any of such securities or units shall be ignored for the purposes of computing his income chargeable to tax and notwithstanding anything contained in any other provision of this Act, (ii) the amount of loss so ignored shall be deemed to be the cost of purchase or acquisition of such  additional securities or units referred to in clause (b) as are held by him on the date of such sale or transfer. Meaning of certain terms "Record Date" means such date as may be fixed by- • (i) a company; • (ii) a Mutual Fund or the Administrator o....