https://www.taxtmi.com/article/detailed?id=1985 Share application money is consideration for prospective share allotment and is not a loan or deposit; companies must keep a separate share application account, follow documented receipt, allotment and refund procedures, and preferably use A/c payee cheques or other permitted banking instruments. Proper timing, basis of allotment, and documentary evidence including bank routing and allotment records substantiate the character of receipts and reduce risk of recharacterisation, tax additions or penalties where statutory provisions restricting cash transactions have been invoked in litigation with divergent judicial views. en-us Fri, 28 Dec 2012 06:42:57 +0530 Fri, 28 Dec 2012 06:42:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=1985 Share application money is consideration for prospective share allotment and is not a loan or deposit; companies must keep a separate share application account, follow documented receipt, allotment and refund procedures, and preferably use A/c payee cheques or other permitted banking instruments. Proper timing, basis of allotment, and documentary evidence including bank routing and allotment records substantiate the character of receipts and reduce risk of recharacterisation, tax additions or penalties where statutory provisions restricting cash transactions have been invoked in litigation with divergent judicial views. Articles Income Tax Fri, 28 Dec 2012 06:42:57 +0530 https://www.taxtmi.com/article/detailed?id=1985