Substantial Interest of Person in Company – Meaning – S. 2(32) Income Tax

Definition of ‘Person who has a Substantial Interest in the Company’ – Income Tax

As per S. 2(32) of Income Tax Act, 1961, unless the context otherwise requires, the term “person who has a substantial interest in the company”, in relation to a company, means a person who is the beneficial owner of shares, not being shares entitled to a fixed rate of dividend whether with or without a right to participate in profits, carrying not less than twenty per cent of the voting power.

Leave a Reply

Get ‘CA Club Updates’ Newsletter via Daily Email

Subscribe for our Newsletter ‘CA Club Updates’ delivered thru Google Feedburner Emails and join our community of 6000 plus subscribers. To join, please click on the ‘SUBSCRIBE’ link below:

SUBSCRIBE

Upon clicking the link, a pop-up window will open. Please fill up your email id and verification code therein. After that check your email and click the confirmation link sent by Feedburner Email subscription.

This one time process is to ensure that you don’t get emails without your own confirmation, i.e. someone else can’t register your email here. Besides, each Newsletter will include an ‘Unsubscribe’ link to maintain your freedom to discontinue getting emails anytime.