When shareholders pay share money in advance (before the company makes a call for it), the company may pay interest on such advance payments.
As per Table F of the Companies Act, 2013, the maximum rate at which interest can be paid on calls in advance is 12% per annum.
This interest is calculated from the date of receipt of the advance amount till the date when the call becomes due. The company has the discretion to pay interest at any rate up to this maximum limit, but it cannot exceed 12% per annum.
For example, if a shareholder pays ₹10,000 in advance for 6 months before the call is due, the maximum interest that can be paid = 100×1210,000×12×6 = ₹600.
The correct answer is Option 2: 12% per annum.