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Bonus shares 2022: As earnings season is about to end and most of the companies having announced their Q1 results, shareholders are waiting for reward from the companies in form of dividend and bonus shares. For such shareholders, there is a piece of stock market news. Three companies are going to consider and declare bonus shares next week. These three companies are Saianand Commercial, Insecticides India and Bharat Gears Ltd. Bharat Gears had earlier informed Indian exchanges that its board is going to consider and approve issuance of bonus shares on 19th August 2022 but now it has rescheduled the board meeting on 24th August 2022 for the same.

Here we list out details in regard to bonus share issues to be considered and announced by these three companies:

Saianand Commercial: Board of directors of micro-cap company Saianand Commercial Ltd is going to consider and approve bonus share issues on 25th August 2022. As per the information available on the BSE website, Saianand Commercial Ltd has informed Indian exchanges about the development citing, "Pursuant to Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby like to inform you that a meeting of the Board of Directors of the Company will be held at registered office of the company on Thursday, 25th day of August, 2022 inter alia, to recommend and approve the issue of bonus shares to the equity shareholders of the company."

Insecticides India: Board of directors of Insecticides India Ltd is going to consider and approve bonus shares in its meeting scheduled on 20th August 2022. Informing Indian stock market exchanges on bonus share developments, Insecticides India Ltd said in its recent exchange filing, "Pursuant to Regulation 29 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 this is to inform that a meeting of the Board of Directors of Insecticides (India) Limited will be held on Saturday, August 20, 2022 inter-alia to consider a proposal for issue of Bonus shares to the equity shareholders of the Company, subject to approval of shareholders."

Bharat Gears: Earlier, the small-cap company had informed BSE that its board of directors is going to consider and approve bonus shares in its finance committee meeting scheduled on 19th August 2022. However, the company informed BSE on 19th August 2022 that the meeting has been rescheduled to 24th August 2022.

In its latest exchange filing, the small-cap company said, "Pursuant to the Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby inform that 3/22-23 Meeting of the Board of Directors of the Company is scheduled to be held on August 24, 2022 inter-alia; to consider the issue of Bonus Shares to the members of the Company by way of capitalization of reserves."

Income tax rules on bonus shares

As per the taxation rules in regard to bonus shares, cost price of bonus shares would be considered zero if it has been issued after 31st January 2018 whereas in case of bonus share issuance on or before 31st January 2018, its cost price will be considered its close price on 31st January 2018. Apart from this, selling of the shares post-bonus share issue is considered on FIFO (First In First Out) basis. Means, if a shareholder decides to sell shares after issuance of bonus shares, initially the shares he or she bought would be considered sold out and once the initial shares are sold, only then bonus shares are considered sold out.

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