Share application money

This query is : Resolved

deepika dhakad (Querist)
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04 May 2012 A comapny's authorised caplital is Rs. 15 Lacs which is fully issued and paidup.

Now whether company can accept further share application money of Rs. 60 lacs without increase its authorised capital or not? Plz suggest.

AS COMAPNY HAS RECEIVED AN AMOUNT OF Rs. 1.50 crores from various persons/ pvt. ltd. companies during 2011-12. Now co. wants to convert such amount in share application money. So plz suggest whether it is possible or not? if yes process thereof. Also what treatment/ conditions will apply as per Income Tax act.

Ajay Mishra

Ajay Mishra (Expert)
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04 May 2012 Hi

If you are receiving share application money in excess of authorised capital in that case you will refund the excess share application money. Because you are not authorised to receive application money.

Regards

deepika dhakad

deepika dhakad (Querist)
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04 May 2012 further clarification req. if possible plz mention section.

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Guest

Guest (Expert)

04 May 2012 We can park the money in share application account but cannot issue shares against it over and above authorised capital. For that we have to first raised the authorised capital

deepika dhakad

deepika dhakad (Querist)
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04 May 2012 WHETEHR comapny can hold amount as share application money in its books without increasing authorised capital? if yes time limit for refund of such share capital money without increasing its authorised capital.? and impact of this as per Income tax act.?

Ajay Mishra

Ajay Mishra (Expert)
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04 May 2012 Hi Ashwin,

I think, you don't know the section and also we also don,t know the section as Ms Deepika want for share application money.

So i will suggest you to ignore the query.

Regards