CUET Preparation Today
| What is the maximum limit of premium on which shares can be issued by the company? |
5% 10% 50% No limit |
| No limit |
| There is no maximum limit of Security Premium under the Companies Act, however as per Income tax if a company issue share at a premium that is not the prevailing market rate or excess premium over market rate then excess premium is chargeable to income tax as per section 56. |
