Share application in cash

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Amit Agarwal (Querist)
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21 January 2012 Dear Experts,

1) Can we take share application in cash and to what extent?

2) Authorised & Paidup Capital of a pvt ltd company is 200,000, in this situation can he invite share application from directors or relatives of directors?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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21 January 2012 1) Courts have given divergent decisions regarding acceptance of share application money in cash with respect to section 269SS of the Income tax Act,1961.
2) As a part of good governance, increase the authorized capital first.

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