Reduction of Share Capital
Section 66 capital reduction through the NCLT
- 1PlanPurpose and tax mapped.
- 2PetitionNCLT filing and hearing.
- 3ImplementOrder filed and register updated.
Share your details. We’ll reply on WhatsApp with the next steps and a checklist.
Pick a plan — the fee is adjusted if you hire us within 30 days.
About Reduction of Share Capital
A clear overview, in simple terms — what it is, why it matters, and how we handle it.
A company can reduce its share capital under Section 66 of the Companies Act by special resolution and NCLT confirmation — to cancel lost capital, return surplus capital to shareholders, or exit specific shareholders through selective reduction. Creditors can object. For tax, amounts paid on reduction are treated as dividend to the extent of accumulated profits, and the balance is a capital receipt for computing gains.
Capital reduction is useful where buyback limits don't fit — for example writing off accumulated losses against capital or exiting a minority shareholder.
We structure the reduction, prepare the petition with counsel, and plan the shareholder tax.
| Provision | Section 66 |
|---|---|
| Approval | Special resolution + NCLT confirmation |
| Creditors | Notice and right to object |
| Tax | Deemed dividend up to accumulated profits |
Work that the law requires a advocate to sign or represent is delivered through Indus Tax's partner professionals; our team prepares the records, coordinates the filing and stays your single point of contact.
Who this is for
Common scenarios where this service is a good fit.
- Companies with accumulated losses
- Companies exiting minority shareholders
- Companies returning surplus capital
What you get
Clear deliverables so you know exactly what's included.
- Structuring
- Petition support
- Tax planning
- Post-order filings
Expert review before every submission — not just data entry.
Working notes and reconciliations you can rely on in future notices.
Resident Indians, NRIs, expats and cross-border businesses — all served.
Documents required
A practical checklist. We'll tell you if anything else is needed based on your case.
* This is a base checklist. After a quick pre-check, we may ask for additional items specific to your case.
Process
A simple, trackable workflow — designed to avoid back-and-forth.
Purpose and tax mapped.
NCLT filing and hearing.
Order filed and register updated.
Get a quote
We share a clear quote on WhatsApp after a quick checklist pre-check.
- Fixed quote on WhatsApp after a short look at your facts and documents.
- Work that legally needs a advocate is signed by a partner professional; we coordinate it end to end.
- Government fees, if any, are paid at actuals and shown separately.
| Factor | DIY | Indus Tax |
|---|---|---|
| Expert review | ❌ | ✅ |
| Notice risk reduction | ❌ | ✅ |
| Deduction optimisation | ❌ | ✅ |
| Audit-ready records | ❌ | ✅ |
| AIS/26AS reconciliation | ❌ | ✅ |
Share your facts and deadline. We'll reply with the right checklist and a clear quote.
Fee adjusted against our service fee if you go ahead within 30 days.
- Priority CA Call-backSkip the queue — a CA calls you within 30 minutes.₹255
- RecommendedCA Consultation (30 min)Talk one matter through properly with a CA.₹755
- In-depth CA Review (60 min)Documents reviewed before the call, written action plan after.₹1,155
Call-backs run Mon–Sat, 9 AM–6 PM IST. Booked outside these hours? We call you first thing the next working morning.
Compare the 3 plansFrequently asked questions
Answers to the most common questions we get.
Official sources
Indus Tax is a private professional services firm and is not affiliated with any government authority. Rules and fees change — we confirm current positions before filing.
