Query regarding taxation

Originally posted by : Devesh
	What is 'substantial interest' in taxation(ipcc)? please explain.. I m confused..

Substantial interest in a firm / proprietorship

A person is said to have subs int in a firm or proprietorship concern, if he and/ or his Relatives are entitled to at least 20% of the firm/ proprietorship concern's profits AT ANY TIME DURING THE PY

Substantial interest in a Company

A person is said to have subs int in a compnay if he, and/or his Relatives hold at least 20% of Equity Shares or Voting Power in the Co. at ANY TIME DURING THE PY

NOTE: Relative = Sibling, Spouse, Lineal Ascendant , Lineal Descendant.