Under section 162(1)(a)(ii) of the Income-tax Act, 2025, one enterprise is an associated enterprise of another if it holds shares carrying at least 26% of what in that other enterprise?

Section 162(1)(a)(ii) of the Income-tax Act, 2025 makes an enterprise associated where it holds, directly or indirectly, at any time in the tax year, shares carrying not less than 26% of the voting power in the other enterprise. The test is voting power, so a 26% stake in capital made up of non-voting shares does not meet it.