INCREASE IN AUTHORISED CAPITAL

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A private limited company with paid- up capital of RS.100000/- have two director and both the director is also a shareholder equally in the company.

Company is needed some investment for starting a new project.

Both the director have decided to introduce a new director and shareholding of new director shall be 30% of the company.

investment by the new director/ shareholder will be 15,00,000/- .

now. the quote is.
1) How can he invest in the company with of RS. 15,00,000/- with hoding of just 30%.

with premium whether it justified with such increase in capital.

4) Is their any chances for income tax notice for such deposit in bank account.

thanks.
Replies (7)
he can give 428571 as ESC and1071428 as SPR,
Whether he can issue ESC on premium to new shareholder .??
Yeah of course it's a private co.
section 56 (2)(vii) in which can't exceed fair value.
Gift taxes?
company in which public are not substantial interested.
What is ESC and SPR

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