Date of Acquisition in case of bonus shares for holding period – The assessee who is allotted bonus shares should be taken to hold them from the date they are issued and not from the date he acquired the original shares in respect of which the bonus shares are issued.

Similarly the debenture holder who is allotted shares in lieu of debentures should be taken to hold the shares from the date the shares, not the debentures, were acquired.

Cost of Acquisition in case of bonus shares for capital gain calculation – Further, for capital gains purposes, with effect from assessment year 1996-97, the cost of bonus shares, securities or any other asset, which is received by any person on the basis of his holding any financial asset but without any payment, shall be taken to be nil.

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