do i still need to pay tax on my bonus shares 
no and yes investors aren t taxed on bonus shares when a company issues them however they must still pay capital gains tax if selling them for a net profit before filing a tax return investors should inform their accountant if they have received bonus shares to ensure that they are managed correctly from a taxation standpoint 2the bottom linebonus issue of shares refers to a company allocating additional shares from earnings or existing reserves to stockholders a bonus issue increases a company s outstanding shares but not its market capitalization as the stock price adjusts proportionally to the additional shares issued companies primarily have bonus issues to attract retail investors provide an alternative to a dividend and or project a sound financial position on the flip side earnings set aside for bonus issues could lead to lost opportunities that generate better shareholder value although investors aren t directly taxed at the time that a company issues bonus shares capital gains tax applies if they are sold for a net profit 