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Oct 28, 2014
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Bonus-stripping strategy can help reduce capital gains tax
If the change in tax rules for debt funds is worrying you, the 1:1 bonus announced on Infosys shares could help reduce your tax liability. If you buy Infosys shares now and sell half your holding after the bonus date, the notional loss you will incur can be adjusted against gains from debt funds, stocks, gold and even property."Selling the (original) shares soon after they are ex-bonus results in a short-term capital loss, which can be set off against any other taxable short-term or long-term capital gains," said Vaibhav Sankla, director with tax consulting company H&R Block.
Source -
http://economictimes.indiatimes.com
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