Form 3cd

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2011 With refence to clause no. 18 of form 3CD of A.Y. 2011-12. is uncle's son also covered in related party for section 40A(2B)

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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07 August 2011 Amounts not deductible in respect of payment to Relatives [Sec. 40A(2)]

As per the provisions of this section any payment made by an assessee to any of his ‘Relatives’ in respect of any expenditure is disallowable to the extent it is considered excessive, or unreasonable, having regard to the market value of Goods or Services or Facilities etc.

Here the following definitions need to be considered for better understanding:

‘Relative’ is defined to include Husband, Wife, Brother, Sister or any other Lineal Ascendant or Descendant;

So uncle's son is not covered under this section,

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