Cost of bonus shares allotted after 1 April 2001 for CG is:
ANil
BFace value
CMarket value on allotment (per relevant Section)
DOriginal cost of original shares (per relevant Section)
Answer & Solution
Correct answer: A. Nil
1. Section 55(2)(aa)(iiia): cost of bonus shares allotted after 1 April 2001 is NIL.
2. Bonus shares are free from reserves; no consideration paid.
3. Full sale value becomes capital gain (subject to indexation for LTCG).
_Source: ICAI BoS CA Final Paper 7, Ch 4 "Capital Gains"_
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