Section 2(24)(iv)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 April 2013 Section 2(24) of I T Act, refers that the value of any benefit or perquisite, whether convertible into money or not, obtained from a company either by a director or by a person who has a substantial interest (20% or more)in the company, or by a relative of the director or such person, and any sum paid by any such company in respect of any obligation which, but for such payment, would have been payable by the director or other person aforesaid, shall be treated as "Income";
My query:
1) Is substantial interest meant for holding of a single person or inclusive of all relatives?
2) Suppose substantial interest of husband & wife taken together is more than 20%, but their individual holding is less than 20%. Will it attract provisions of 2(24)(iv)?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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23 May 2013 The section talks about a single holding whether it is husband or wife or any family member. As per Indian Income Tax Act when wife is assessed separately then how come her holding is to be clubbed together with the husband.