My company's authorized share capital is Rs. 2 crores..we received 2 crores in full but we showed 1.5 crore under subscribed capital and 50 lacs were under share application money.Total 2 crores was under share capital.Now we want to issue shares against application money for premium.which will make our share capital as 1.75 crores and 25 lacs will be under share premium account.Kindly let me know the procedure to be followed
Menu
share application money
Replies (4)
I dont think any special formality needed to be done. Jst relevant accounting entries are required. I think relevant accounting entry will be
Share application Dr. 25 lac
To Share premium 25 lac
Besides that, you should file form 2 for return of allotment.
Experts advice required.
Appreciate Response from Shridhi, if it is a private company on which the query is silent.
However for public compnay as you have received application money, members must have passed special reolution, plz check whether it provides for premium.
Also for private companies Board Resolution will require.
Kindly take suitable share application form.
Regards
Jaideep Pandya
Hi Jaideep, its a pvt. co. as the query is posted under "pvt. co." head.
Thanks Shridhi for pointing out.... Still Share application form needed for Income Tax purpose
Regards
Jaideep Pandya
Recent Topic
- Issue with ITR2 online utility for HUF
- TDS deducted by EPFO under wrong section
- Schedule SI in ITR-2
- What is the easy way to do CA- through foundation
- Schedule FA query for this AY 2026-27
- Business income source for husband and wife
- Set off of LTCL against STCG under section 536(2n)
- Audit Workflow tool
- Is CA through direct entry easy for a commerce stu
- Dividend and withholding tax - DTAA- RSU
Related Topics
CAclubindia
