Sec.2 (22)e of it act

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2012 Is this section apply to a Private company if a amt. of Rs. 25000/- given by company to director's nephew.

Amol S Joglekar

Amol S Joglekar (Expert)
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17 August 2012 It does apply to PRIVATE companies. But it will not apply to nephew case.

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Arun Biyani

Arun Biyani (Expert)
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17 August 2012 hi.. section 2 (22) (e) has no relation with director, it is connected with the shareholder, therefore at first if ur director happens to be holding more than 10% shares of the company, the trasaction will attract the provision of this section. Although the same is not applicable for transaction with relatives of Shareholder, however if the transaction has taken place to give benefit to shareholder i.e. ur director in this case, the transaction will fall under the scope of the section.

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