Relative for sec.40A(2)

CA Sanjay Baheti (PROPRIETOR) (1155 Points)

18 February 2010  

Only directors and their relatives are covered under sec. 40A(2) and not other key management personnel of a company. A company enters into a contract with a person who happens to be a relative of its CEO. Is it covered under sec. 40 A (2)? Though this transaction is a related party transaction as per AS 18, it is not one as per IT Act. Does this transaction require disclosure in form 3 CD?


Ca Sanjay Baheti