25 September 2010
substantial interest means, having 20 % or more voting power or having share in profit on 20% or more, whether individually or with relatives.
But I am still not clear whether both the terms are similar or different, because:
1. Sec-2(32) of IT Act defines a personhaving substantial interest as "person who is beneficial owner of shares,not being entitled to fixed share of dividend, whether with or without a right to participate in profits carrrying not less than 20% of voting power."
2.On the other hand when I read Section 94(2) of IT Act, which provides for the prevention of the practice of sale of securities-cum-interest by an assesse who has a "beneficial interest in such securities".
I have the doubt because the former uses the term 'beneficial owner' while defining a person having substantial interest And the latter uses the term 'assesse having beneficial interest' Please explain.
CAclubindia
