A concern pays remuneration to a family member of an individual who has a substantial interest in it. In the absence of the professional or technical exception, whose remuneration is covered by…
Question and options
A concern pays remuneration to a family member of an individual who has a substantial interest in it. In the absence of the professional or technical exception, whose remuneration is covered by section 99(1)(a)(i)?
The individual’s adult child
The individual’s adult sibling
The individual’s spouse
The individual’s parent
Answer and explanation
Section 99(1)(a)(i) of the Income-tax Act, 2025 includes in an individual’s total income the remuneration of his or her spouse from a concern in which the individual has a substantial interest. Remuneration of other relatives is not clubbed under this clause, although their holdings count in testing substantial interest.
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