Share Application Money

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ANIL KUMAR (Querist)
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19 December 2008 In Private Company for How much Period can we retain Share application Money received from Relatives and others........ and
IF So When ever Cash Become Negetive company can show Share application money received and then when cash surplus available they can refund them

Please Explain

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Anil Kumar

Bindu Madhav

Bindu Madhav (Expert)
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20 December 2008 It is the general practice of small companies in olden days. However, now income tax became very strict on Share application Money and keep asking about the share application money details and can treat as company's income if not able to produce proper details/ proofs.

There is no time limit for keeping the money or refunding in case of PRIVATE Limited company