Bonus Shares & Stock Split Calculator

A bonus issue gives shareholders new shares for free, in proportion to what they hold. PSX notices quote it as a percentage: a 10% bonus is 10 new shares for every 100 held, or 1 for 10. The company capitalises part of its reserves, so there is more paper but the same business, and the share price adjusts down to match. The calculator works out the whole-share entitlement, the adjusted price, your new average cost and the tax.

You hold 1,000 shares bought at an average of Rs 150.00. The company announces a 10% bonus and the share trades at Rs 200.00. You receive 100 bonus shares, the price adjusts to Rs 181.82, and before tax the holding is still worth Rs 200,000. The tax then decides what you keep:

Either way the tax costs a filer Rs 1,818, 0.9% of the holding, and a non-filer Rs 3,636. The bonus itself adds no value: the price falls by the same proportion as the shares rise.

Under section 236Z of the Income Tax Ordinance the company issuing bonus shares withholds tax on their value: 10% for filers and 20% for non-filers in tax year 2027. It is a final tax, so nothing more is due on the bonus shares themselves. The rate is in the FBR withholding tax rate card and the Finance Act 2026 brief.

Which price values the shares. The rate card says "value of bonus shares" and nothing more, but section 236Z of the Ordinance is specific: for listed companies it is the day-end price on the first day of book closure. By then the share already trades ex-bonus, so the calculator values the shares at the ex-bonus price by default: that gives Rs 1,818 of tax on the example. The earlier, pre-ex price would give Rs 2,000. The ex-bonus price is theoretical, so enter the actual closing price under More options when you know it.

How it is collected. The company withholds part of your bonus shares until the tax is paid. You can pay in cash to have them released. If you do not, the company can sell enough of the withheld shares to recover the tax. Under section 236Z the company deposits the tax with FBR within 15 days of the book closure. Your company's notice gives the payment method and the dates. Both outcomes are shown side by side in the calculator.

Only whole shares are credited, so 105 shares at a 10% bonus entitle you to 10.5: 10 shares and a fraction of 0.5. Companies combine the fractional entitlements into whole shares and sell them in the market. Some pay the proceeds to the shareholders entitled, which would be about Rs 91 here at the ex-bonus price. Others give them to a charitable institution. The notice says which, so the calculator lets you show the fraction as paid or not paid.

A split does not capitalise reserves. It divides each share into several of a lower face value. A 2-for-1 split turns 1,000 shares at Rs 500.00 and a Rs 10 face value into 2,000 shares at Rs 250.00 and a Rs 5 face value; your cost per share halves too. A reverse split goes the other way: a 1-for-10 consolidation turns 1,005 shares at Rs 20.00 into 100 shares at Rs 200.00 plus a fraction. Neither changes the size of your stake, and no bonus-share tax applies.

Compare the effect with a cash payout using the dividend calculator (cash dividends have their own rates, see the dividend tax calculator), and with an issue where you have to pay for the new shares in the right shares calculator. To combine your old and new purchases into one average, use the stock average calculator. When you later sell, capital gains tax is worked out by NCCPL from its records of when and at what cost each lot was acquired, see the capital gains tax calculator.