Tax on Bonus Units of Debt & Equity Mutual Funds

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  1. dineshgoyal

    dineshgoyal New Member

    How are bonus units of debt & equity mutual fund taxed?Does it depend on holding period of such bonus units.Also,whether the same rule apply for bonus shares of a company listed on stock exchange?
  2. Sumit Agarwal

    Sumit Agarwal Active Member

    The cost of bonus unit is taken as nil rest the treatment is same.
  3. gaurav_kumar

    gaurav_kumar Well-Known Member

    As answered by @Sumit Agarwal , the cost of bonus units is Nil.

    Tax would be levied at the time of sale of these bonus units.

    If the period of holding is more than 1 year - the gains on sale would be tax free.
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