We develop an ab initio time-dependent wavefunction based theory for the description of a manybody system of cold interacting bosons. Like the multi-configurational time-dependent Hartree method for bosons (MCTDHB), the theory is based on a configurational interaction Ansatz for the many-body wavefunction with time-dependent self-consistent-field orbitals. The theory generalizes the MCTDHB method by incorporating restrictions on the active space of the orbital excitations. The restrictions are specified based on the physical situation at hand. The equations of motion of this timedependent restricted-active-space self-consistent-field (TD-RASSCF) theory are derived. The similarity between the formal development of the theory for bosons and fermions is discussed. The restrictions on the active space allow the theory to be evaluated under conditions where other wavefunction based methods due to exponential scaling in the numerical effort cannot, and to clearly identify the excitations that are important for an accurate description, significantly beyond the meanfield approach. For ground state calculations we find it to be important to allow a few particles to have the freedom to move in many orbitals, an insight facilitated by the flexibility of the restricted-activespace Ansatz. Moreover, we find that a high accuracy can be obtained by including only even excitations in the many-body self-consistent-field wavefunction. Time-dependent simulations of harmonically trapped bosons subject to a quenching of their noncontact interaction, show failure of the mean-field Gross-Pitaevskii approach within a fraction of a harmonic oscillation period. The TD-RASSCF theory remains accurate at much reduced computational cost compared to the MCTDHB method. Exploring the effect of changes of the restricted-active-space allows us to identify that even self-consistent-field excitations are mainly responsible for the accuracy of the method.bosons into a fermonic wavefunction of non-interacting fermions with frozen parallel spins [20]. This mapping provides the exact solution for the ground-state of the system for arbitrary trapping potentials and remains valid also for the excited states, as well as non-equilibrium solutions also for any external potential [21]. In the case of non-interacting bosons or more generally in the Gross-Pitaevskii (GP) limit, i.e., ¥ N and l = N constant, with N the number of bosons and λ the interaction strength, the GP equation or its time-dependent (TD-GP) analog provides the exact description of the system. In this situation, the exact wavefunction of the system is described by a single product of single-particle functions and the interactions between the particles are correctly described by the mean-field approach. The above models assume that the bosons interact through a pair-wise contact potential. Considering other types of interaction potentials between the particles, other models can be solved exactly with an external potential. One model uses an inverse-harmonic interaction between the particles...