Bonus share tax issues

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  1. santosh30339

    santosh30339 New Member

    I have four questions and here is the scenario, plan and questions in that order

    Current scenario
    I sold some of my bonus shares within less than an year of allocation. I understand I will be liable for short term capital gain in this case at the rate of 15.45%. I had sold the original shares too but they were bought long time back and hence result in long term capital gain but I dont have to pay since tax rate is zero.

    Plan
    As a recourse I am trying to buy some new shares(not the shares i sold or i already own) which will issue bonus issues in near future and then sell the original shares after the bonus issue resulting in short term capital loss ( will keep the bonus shares for more than a year).

    Questions
    1. Is it legal and do i have to take any precautions?
    2. will I have to adjust the short term capital loss i generate by bonus stripping against the long term capital gain I already generated. This will make the whole exercise pointless.
    3. I have made some recent share purchases which are losses as it stands. Can I sell them and book a short term capital loss to adjust against short term capital gain i created
    4. Do you have any other bright ideas to avoid the tax legall?

    Regards
    santosh
     
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