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Definition of "Bonus stripping"

Where any person acquires any unit (original unit) within a period of 3 months prior to the record date and is allotted bonus unit on such date and such person transfers original unit within a period of 9 months after such date, then any loss arising to him shall be ignored and the amount of loss so ignored shall be deemed to- be the cost of acquisition of such bonus unit held by him on the date of such sale or transfer.

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