LAWyersclubindia LCI
Login  Register
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Bonus Shares

(Querist) 14 August 2009 This query is : Resolved 
A private limited company who is making profits since incorporation, has not declared any dividend.

Now, the Company wants to issue bonus shares using credit balance lying in Profit & Loss Account.

Can the Company do so?

If Yes, please explain the tax implication also.

Thanks & Regards
Report Abuse
Vineet (Expert) 13 December 2009
Why not.

There is no income tax implication as company is capitalising its accumulated profits and it will not amount to distribution of profits.

There may be stamp duty liability depending upon the existing authorised capital and proposed paid up capital post bonus issue.

Previous
Next

You need to be the querist or approved LAWyersclub expert to take part in this query .


Click here to login now



Similar Resolved Queries :



Ask Query
Unanswered Queries

Laws Follow us





Browse by Category

Stay updated with latest Posts!