Section 2(41) Income-tax: Relative – Meaning

As per Section 2(41) of Income Tax Act, 1961, unless the context otherwise requires, the term “relative”, in relation to an individual, means the husband, wife, brother or sister or any lineal ascendant or descendant of that individual.

Its important to understand the meaning of term ‘relative’ in the context of Income Tax Act/ Rules as there are many circumstances where disallowances or certain tax liabilities have been stipulated under difference IT Sections/ Rules, which may occur due to transactions even with a relative.

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