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;
CAclubindia
