Section 2(32) Income Tax: Meaning of Substantial Interest of a Person in Company

As per Section 2(32) of the 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 (20%) of the voting power.

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