tax audit 40A 2

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2010 Sir, query is regarding: tax audit purpose under section 40A(2)
Mrs. X(widow) is proprietor of a firm.
Y is her son.
Int. on loan is given to Y, Y's Wife & Y (HUF).
Will all 3 be considered as relative u/s 40A(2)?
Pls clarify

Aditya Maheshwari

Aditya Maheshwari (Expert)
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06 September 2010 Yes

Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2010 sir plz explain in detail.
Earlier u have stated in my other query that relative u/s 40A(2) means spouse, sister, brother or any linear ascendant or descendant of that individual only.
So how Y's Wife came in that category?
Plz revert

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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06 September 2010 Y's wife would be lineal ascendent of the assessee.

Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2010 sir lineal ascendant includes only assessee's parents, grandparents, children & grand children.
Isnt it so?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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06 September 2010 visit this link
]https://www.caclubindia.com/articles/relatives-under-the-income-tax-act-a-relative-concept-963.asp

mohinder kansal

mohinder kansal (Expert)
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06 September 2010 in my opinion Y's wife will not be relative of assessee under the section

Aditya Maheshwari

Aditya Maheshwari (Expert)
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07 September 2010 Yes kansalji sons wife is not considered under that section and the same is given in the link provided and so the answer is y's wife will not be relative of the assessee.

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mohinder kansal

mohinder kansal (Expert)
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07 September 2010 Dear Aditya, I didn't see the link u provided. I don't know what is mentioned there, it was a simple question whether son's wife is relative under the section for which I replied. nothing else. I didn't contradict u. don't take so seriously. sorry for the trouble.