Sec 52
hacker boy (127 Points)
24 August 2017
security premium money received on issue of shares is utilized in business??
3 Replies
Luvish Jain
(Tax Consultant)
(507 Points)
Replied 24 August 2017
u cannot use it for business and can be used for following
a) Issuing fully paid bonus shares to the members.
(b) Writing off preliminary expenses.
(c) Writing off the expenses of or the commission paid or discount allowed on any issue of shares or debentures of the company.
(d) Providing for the premium payable on the redemption of preference shares or debentures of the company.
(e) In purchasing its own shares i.e. Buy Back u/s 77 A
a) Issuing fully paid bonus shares to the members.
(b) Writing off preliminary expenses.
(c) Writing off the expenses of or the commission paid or discount allowed on any issue of shares or debentures of the company.
(d) Providing for the premium payable on the redemption of preference shares or debentures of the company.
(e) In purchasing its own shares i.e. Buy Back u/s 77 A
hacker boy
(127 Points)
Replied 24 August 2017
Sec 52 resticts the account of security premium.....not money received on security premium
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