Purchase of Own Shares : Where the company purchase its own shares, the payment refund by shareholders is not treated as dividend.
Capital structure: Importance in selection of capital structure Serving the capital base with consistent dividend policy.
Thus his tax liability shall work out as follows: Thus, effective tax outflow can be reduced to the extent of Rs 59,000.The holding period of the bonus shares starts from the time that they baccarat pressure cooker 6l were allotted.For the purpose of the tax calculations the cost of a bonus shares would be considered as zero.But when they are sold, they may be taxable, depending on the time for which they are held.Please send your feedback.Low debt financing and high equity financing: Interest low EBT-high Tax high EAT-high EPS-low Return on capital-high.Indexation of cost of acquisition.Here they would have to segregate their holdings and sale into long term capital gains for the original holdings plus a short term gain for the bonus shares and then make the tax payments accordingly.Now customize the name of a clipboard to store your clips.Payout decision depends on a lot of factors, the primary consideration being the company's liquidity position as cash dividends imply immediate cash outflows.Ordinary connotation means the sum paid to or received by a share holder proportionate to his share holding in a company out of the total sum distributed.The ex-price of the share will work out to Rs 1,350 share.This has a bigger implication in the sense that when it comes to calculation of the gains on the shares then the entire amount of sales proceeds on the shares would be the gains.So what does the whole discussion boil down to?Show More, no Downloads.The rate of Tax for the assessment year 2013/14 shall be 15 plus surcharge @ 5 plus education cess @ 2 plus secondary and higher education cess @.
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The next questions are about the cost of the shares and how they would actually be treated for tax purposes.
Time period of holding.
It plays positively on the stock price reflecting investor confidence, given a companys sound dividend payout record.