Sec.40A(2)(b)-Payments to Relatives

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ramcharan (articled assistent) (367 Points)
Replied 11 September 2012

payment is to be made in cheque

ramcharan (articled assistent) (367 Points)
Replied 11 September 2012

@ prashant jain:

relative is defined u/s 2(41) of the income tax includes"spouse of the assessee ,brother sister,or any lineal ascendent or descendent of the individual"

leneal ascendent :father, mother,grend father,grand mother,great garn father, great grand mother

leneal descendent:son,daughter,grand son,grand daughter,great gand son,great grand daughter

Pav Ni (Article assistant) (43 Points)
Replied 17 September 2012

How can i know a person is a relative or not.

ramcharan (articled assistent) (367 Points)
Replied 18 September 2012

If we know the persons relatives then we can proceed, even though we know that the transactions with relatives we have to take an acknowledment from clien other that those specified(if any), no other transaction is made with relatives

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Prateek Mundra (Industrial Trainee- HUL) (63 Points)
Replied 29 October 2016

Income Tax u/s 40A(2)(b)
In relation to section 40A(2)(a) the parties are as follows:
(a)	where the assessee is an individual-any relative of the assessee
(b)	where the assessee is a company, any director of the company or any relative of such director.
(c)	any individual who has a substantial interest in the business or profession of the assessee, or any relative of such individual
(d)	a company having a substantial interest in the assessee or
	any director of such company or any relative of such director
	or any other company carrying on business or profession in which the first mentioned company has substantial interest;
(e)	a company of which a director has a substantial interest in the assessee; or any director of such company or any relative of such director
(f)	any person who carries on a business or profession
	-where the assessee being a company, or any director of such company, or any relative of such director has a substantial interest in the business or profession of that person

Neethi V. Kannanth (.) (19015 Points)
Replied 18 January 2021

Is the entire expenditure disallowed or only the amount which is in excess of the fair market value of the goods, services or facilities disallowed u/s 40A(2)(b)?