Is there any limit for keeping the surplus for section 8 companies?

General
1

Hi. Is there any limit for keeping the surplus for section 8 companies?

2

No there is no limit on keeping surplus which we understand is the 15% set aside from income allowed under Section 11 of Income Tax Act.

CS Sharad Bhargava

3

There is no such time limit.

4

This surplus is going to be considered as deemed accumulated income as per Section 343 of new IT Act and required to be deposited in modes specified u/s 350.

  1. (1) The regular income, as reduced by the application of income and accumulated income under section 342, to the extent of 15% of the regular income, shall be considered as deemed accumulated income and shall be invested or deposited in any of the modes permitted under section 350.
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