Income tax & company act

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Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2014 Dear Sir,

1. If Company has issued a preference share with a premium, my query is that can company will be redeemed at the said preference share as per company act or income tax act, please reply me.
2.Please reply me the maximum rate of dividend on preference can issue by the company as per company act, 2013?
Thanks
Vinod

Nikhil Kaushik

Nikhil Kaushik (Expert)

04 June 2014 1. preference shares have to be redeemed as per the terms of the shares issue. there is no bar under companies act or income tax act.

maximum redemption period can be 20 years. ( I am not sure if the period has been extended. For infra projects it is 30 years. Also refer Section 48 of Companies act 2013 for redemption procedure.

2. leaving the query open for second question.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

31 July 2024 1. If Company has issued a preference share with a premium, my query is that can company will be redeemed at the said preference share as per company act or income tax act, please reply me.
2.Please reply me the maximum rate of dividend on preference can issue by the company as per company act, 2013?
Thanks

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