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This provision is for reinvestment (capital expenditure) which increases the assets side (DR./Right hand side) of the balance sheet. This has nothing to do with getting tax benefit if company gives bonus share.

Sahas ji and relate277 ji, I think tax free for re investment is only for industries and tourism not other listed companies.

In my view, if it is for listed companies too, I think, we would get 25 more bonus but have to pay tax 5% on 125 bonus. But we would never know, Its not for Us.

So, benefit for share investors will be from- CIT's involvement in market stabilizing, special treatment for EQ affected business/loan, probably increment of capital in insurance company, promoting bonus shares distribution, increase in business of all listed companies due to more investment from govt. which will lead to increase in business activity etc.

I am happy with budget, now its implementation time.

Rising Sun jee, might not be that way. It's like, the income tax for the company is 25%. Disposable income is already tax deducted i.e. 25% less. Dividend is distributed from this disposal income. As you know, tax of 5% is lavied on dividend distribution. While distributing stock divident, companies do deduct 5% tax in the form of cash. But there, definitely an advantage to the investors. Like, for example, if you are getting stock divident worth Re. 100 under current provision then with the tax waiver, you can get Re. 105.26 worth of stock divident under the new provision. Lets make is more simple. If you are to get 100 shares as a bonus under current provision, then, under new provision you will get 105 shares, if all other things remai the same. You will earn 5 shares more in every 100 shares.

I think income tax is 25%

I see GIANT BULL RUNNING in those shares, those like to distribute bonus shares then cash like chilime, muktinath, cbl, insurance etc.

Only problem is, 99% of our traders are not that bright. But, we can educated them.

Those companies that made 10 crore this year will be making 13 crore (if income tax is 30%). So bonus will the 30% more.

(is income tax 30% or 25%?)

Thanks for the info Sahas ji. I did hear about exemption of tax on profit used on reinvestment buy did not hear or thought about it being connected with listed company or share market.

I think they pay abour 30% income tax (clear me if I am wrong). Then if they distribute profit in the form of BONUS SHARE, There will be 30% more profit which is hugeeeeeeeeeeeee.

Ps- let me copy your info for my other post. thanks.

बजेट भाषण अनुसार कम्पनीहरुले पुँजी बृद्धि गर्न प्रयोग गर्ने नाफामा कर नलाग्ने नीतिले नाफा कमाउने कम्पनीहरुलाई आर्थिक वर्ष २०७२/७३ मा बोनश दिन प्रेरित गर्नेछ । यसले संस्था सबल हुनुका साथै शेयर धनी समेत बढी लाभान्वित हुनेछन् । साथै आउँदो मौद्रीक नीतिले समेत बैंक तथा वित्तीय संस्थालाई बोनश शेयर बाँड्न निर्देशन दिने प्रबल सम्भावना रहेको छ । साथीहरुको विचार पनि शेयर गरौं न ।