How to minimise your tax liability on the sale of your bonus shares

Investors can use the grandfathering clause and set-off provisions to reduce the tax payable on sale of bonus shares

Investors will remember Budget 2018 for a long time for the proposal to reintroduce long-term capital gains (LTCG) on the sale of shares and equity mutual funds. What is notable is that a 10 per cent tax will be levied on LTCG without the benefit of indexation, as is available in other asset classes. The only relief offered was that LTCG up to Rs 100,000 in a financial year will not be taxed. Another concession made to equity investors was that they will be spared from paying taxes on LTCG realised after April 1, 2018, but earned until January 31,