For tax year 2026-27, under section 162 of the Income-tax Act, 2025, what minimum share of the voting power in another enterprise, held directly or indirectly by one enterprise at any time during…
Question and options
For tax year 2026-27, under section 162 of the Income-tax Act, 2025, what minimum share of the voting power in another enterprise, held directly or indirectly by one enterprise at any time during the tax year, makes the two associated enterprises?
51%
26%
25%
20%
Answer and explanation
Section 162 of the Income-tax Act, 2025, which replaces section 92A of the 1961 Act, treats two enterprises as associated where one holds, directly or indirectly, shares carrying not less than 26% of the voting power in the other. The 51% figure belongs to a different test, where loans advanced by one enterprise make up at least 51% of the other's total assets.
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