Substantial interest in a firm

Mr.Mazhar Shaik

If any person is, at any time during the previous year, beneficially entitled to not less than twenty percent of the profits of the business or profession he is having substantial interest in the business. Please see Section 40A(2)(b)-Explnation of the Income-tax Act, 1961.

Best Wishes

Sathikonda

Thanks

But to check the substantial interest do we need to see the sustantial interest  jointly or on individual basis.

like in my example If i tke the Substantial interest jointly than the percentage is more than 20% but if taken on idividual basis than its less than 20%