In this article, we will explain how to deposit paid-up capital to a company account according to the income tax act.
According to the company act 1994, two types of capital are required for company formation:
- Authorized capital
- Paid-up capital.
Paid-up Capital: Company Trade license fee is calculated on the paid-up capital and the paid-up capital has to deposit on time to the company bank account otherwise 30% (thirty percent) tax will be imposed on the paid-up capital amount according to the income tax act.
According to income tax section 19 sub-section 24, deposit paid-up capital on time to the company bank account through bank transfer or crossed cheque and avoid unexpected penalties and grow your business.