Shares with premium

Pvt ltd 371 views 1 replies

Can a pvt ltd company issue new shares and collect a premium on the same? If yes, is the premium so collected treated as income?

Replies (1)

Yes, shares  can be issued at a Premium.

But such Premium amount can be used only for the following purposes:

1. for issuing bonus shares.

2. for writing off preliminary expenses.

3. at the time of redemption of reedemable preference shares..

 


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