The optimum capital structure of a company is generated from a proper infusion of debt and equity in the company’s capital structure and this will also help the Company to properly plan its tax. Almost all large and small companies mainly depend upon share capital and borrowed capital for financing their projects. Borrowed capital for a company can be funds which are mainly raised by issuing debentures, or raising loans from Financial institutions or banks which may be secured or unsecured. If the capital is raised as secured loan or debentures, there will be an underlying asset of the company for securing the amount which the company needs to intimate to the Government.