WHO IS SAID TO BE HAVING SUBSTANTIAL INTEREST IN A COMPANY

WHO IS SAID TO HAVE SUBSTANTIAL INTEREST IN A COMPANY

PLS HELP ME

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This has been defined in Income tax act and not in companies act so far I know.

As per income tax act

           An individual is deemed to  have substantial interest if he individually or along with his relatives beneficially hold equity shares  carrying not less than 20% of the voting rights at any time during the previous year.  

For this purpose relatives means husband, wife, brother, or sister or any lineal ascendant or descendent of that individual.

th % of shares to be held in order to be substantially interested stands changed to 10%

u/s 2(32) of income tax act

is substantial interest for non corporate entities is increase to 40%

please clarify

In the case of a company : If an individual beneficially hols ( Individually or along with his relatives) 20% or more of equity shares in the company at any time during the previous year...

In any other case : If an individual is entitled to 20% profit in the concern....

I  He Along with wife sisters Etc will apply only in case of clubbing provisions Sec 64(1)(ii) and .as per 2(32) individual interst of 20% must be taken into A/c

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