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Relative u/s 40a(2)(b)

Vijay Kumar Thota (Chartered Accountant) (74 Points)

26 September 2014

WHAT IS THE DEFINITION OF RELATIVE AS PER SECTION 40A(2)(b) OF INCOME TAX ACT WITH REFERENCE TO COMPANY & PARTNERSHIP FIRM

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deepak kumar srivastava (na) (281 Points)
Replied 27 September 2014

Assessee --- company deep pvt ltd

Specified person u/s 40a(2)(b) as under:--

1. Mr. D(director) ;and

ANY relative of Mr. D (whereas relatives of Mr. D means husband, wife, brother or sister or any lineal ascendant or descendant of Mr.D)

2. say Mr. s has substantial interest in the deep private ltd (i.e. MR. S is, at any time during the previous year, the beneficial owner of shares (not being shares entitled to a fixed rate of dividend whether with or without a right to participate in profits) carrying not less than twenty per cent of the voting power)

In that case specified person are-

Mr. S; and

Any relative of Mr. S

3. Say PS ltd has substantial interest in DEEP PVT ltd. Ps ltd also has substantial interest in RK PVT ltd.

In that case specified person are—

A. Ps ltd;

B. ANY director of ps ltd say Mr. X is a director ;

C. Any relative of Mr.X ;and

D. Rk pvt ltd

4. Mr. bond is a director of SS LTD. HE HAS SUBSTANTIAL INTEREST IN DEEP PVT LTD.

In that case specified person are-

a. MR. BOND

b. SS LTD

c. any other director of SS LTD say Mr. james is also a director of SS LTD

d. any relative of Mr. Bond

e any relative of Mr. James

5. SAY DEEP PVT LTD HAS substantial interest IN GH PVT LTD OR MR. .D DIRECTOR OF DEEP PVT LTD HAS substantial interest IN GH PVT LTD OR ANY RELATIVE OF MR. .D HAS substantial interest IN GH PVT LTD

In that case specified person are-

a. GH PVT LTD

6. REPLACE ALL COMPANY MENTIONED ABOVE WITH DIFFERENT PARTNERSHIP FIRMS EXCEPT ASSESSEE DEEP PVT. LTD AND DIRECTOR OF THESE COMPANIES BY PARTNER OF FIRM EXCEPT MR D DIRECTOR OF DEEP PVT. LTD . YOU WILL GET OTHER CASES.

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