Can any body tell me what is Sec. 40A(2)(b) of Income Tax Act, 1961.....and what to be shown in while preparing FORM CD
Madhusudan Kabra (knowledge seeker) (1779 Points)
03 September 2009Can any body tell me what is Sec. 40A(2)(b) of Income Tax Act, 1961.....and what to be shown in while preparing FORM CD
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 03 September 2009
Madhusudan
If any expenditure is made by assessee & this transaction involves the person who is relative as defined in this section & the payment made to him is reasonable excess in comparison to market fair value.....then such exces amount is disallowed & added to the income of assessee.
CA Hemant Kumar
(CA, LLB (p), B.Com)
(204 Points)
Replied 03 September 2009
this section applies for the payment to relatives.....
in 3CD you have to specify any payment done to relative of the assesse during the previous year
Madhusudan Kabra
(knowledge seeker)
(1779 Points)
Replied 04 September 2009
who comes under the term relatives .....if i made payment to my cousin brother ....is it admsible nder this act ???
VARUN
(PCC STUDENT)
(523 Points)
Replied 04 September 2009
The term Relative shall include -
- Spouse of the individual.
- Brother or Sister of individual.
- Lineal ascendant or Lineal Descendant of individual.
- Lineal ascendant or Lineal Descendant of spouse of individual.
- Brother or Sister of parents of individual.
- Spouse of the persons mentioned above.
Regards
Varun Makhija
CA. VIKAS GUPTA
(PROPRIETOR)
(305 Points)
Replied 04 September 2009
Hi,
Definition of relative given by Varun does'nt seems correct. this deifnition is given u/s 56 which related only to that section.
Definiation of relative is given in section 2(41) which is that relative means
- Husband, wife, brother or sister or any lineal ascendant or descendant of that individual
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