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Section 40A(2)(b)

(For the purpose of disclosure in Audit Report in Form 3CD)

 

Payments covered under this section :-

 

Expenditure must have been incurred for goods, services or facilities.

 

Person covered :-
 

 

Assessee
(who has made the payment)

Person to whom payment has been made

( covered under section 40A(2)(b) )

Individual

- Any Relative of Individual

 

- Any Person in whose business, assessee or any relative of assessee has a substantial interest

 

Company

 

- Any director of company, or

- Any relative of directors

 

- Any Person in whose business, assessee company or any director of such company or any relative of such directors has a substantial interest

 

Firm

 

- Any Partner of firm, or

- Any relative of Partners

 

- Any Person in whose business, assessee firm or any partner of such firm or any relative of such partners has a substantial interest

 

HUF/AOP

 

- Any member of HUF/AOP, or

- Any relative of members

 

- Any Person in whose business, assessee HUF/AOP or any member of such HUF/AOP or any relative of such members has a substantial interest

 

ALL

 

- Any Individual having substantial interest in assessee’s business, or

- Any relative of such individual

 

- Company having substantial interest in assessee’s business, or

- Any director of such company, or

- Any relative of directors of such company
 

- Any other company in which first mentioned company has a substantial interest (inserted w.e.f. AY 2013-14)

 

- Firm having substantial interest in assessee’s business, or

- Any partner of such firm, or

- Any relative of partners of such firm

 

- HUF/AOP having substantial interest in assessee’s business, or

- Any member of such HUF/AOP, or

- Any relative of members of such HUF/AOP

 

- Company, whose any director has substantial interest in assessee’s business, or

- Any other director of such company, or

- Any relative of directors of such company

 

- Firm, whose any partner has substantial interest in assessee’s business, or

- Any other partner of such firm, or

- Any relative of partners of such firm

 

- HUF/AOP, whose any member has substantial interest in assessee’s business, or

- Any other member of such HUF/AOP, or

- Any relative of members of such HUF/AOP

 

 

 

 

* Definition of Relative
 

Relative means Spouse, Brother, Sister, any lineal ascendant or descendant of the individual.

 

** Definition of Substantial Interest


A person is deemed to have substantial interest in a business or profession if such person is the beneficial owner of at least 20% of equity capital or 20% of profits.

ID: 83 | Views: 1374 | Date: 03-05-2013| Posted By:

CA Mohit Jain



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