Figyan

CA Bigyan Kumar Mishra

is a fellow member of the Institute of Chartered Accountants of India.He writes about personal finance, income tax, goods and services tax (GST), company law and other topics on finance. Follow him on facebook or instagram or twitter.

When and how bonus shares are issued to shareholders

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Instead of paying a cash dividend, a company might decide to go for a bonus issue of shares. It's a stock dividend allotted by the company to its shareholders out of the reserves of the company.Each existing shareholder of the company will get free shares against that they currently hold.One of the most important reasons why a company issues bonus shares is that it … [Read more...] about When and how bonus shares are issued to shareholders

When and why companies pay dividend

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A company can pay a dividend to its shareholders out of profits made by the company during the financial year. A company can also pay dividend out of its cash reserve in case of loss or not having adequate profit to pay dividend. It's up to the management.Dividends are paid per share basis to the shareholders. It can be paid anytime during the financial year. If … [Read more...] about When and why companies pay dividend

Rights issue – All you need to know

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The main purpose of the rights issue is to increase additional share capital from the existing shareholders. The company might take this path if they have decided not go public to raise additional capital.Existing shareholders can participate in the rights issue in the proportion of their shareholding. For example: if a company has decided to go for 1:2 rights … [Read more...] about Rights issue – All you need to know

What happens when you file a belated income tax return?

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Belated means late or occurring later than the usual time. When someone says a belated return, this means the income tax return has been filed after the due date of filing.Let us understand provisions of income tax for belated returns and what consequences taxpayers will face by filing a belated return.A belated return refers to an income tax return that is filed … [Read more...] about What happens when you file a belated income tax return?

Buyback of shares- All you need to know

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Buyback is a corporate action in which a company invests in itself by buying back shares from the existing shareholders in the market. This process is also referred to as share repurchase.Buyback of shares reduces the company's outstanding shares from the market. When a listed company wants to buy back its own share, it publicly announces its intention to do so … [Read more...] about Buyback of shares- All you need to know