Under the Income-tax Act, 2025, which of the following does not qualify as an associated enterprise for…
The holding of 25% does not meet the voting-power threshold. Section 162 of the Income-tax Act, 2025 uses a threshold of at least 26% for the shareholding relationships…
Choose your answer
Under the Income-tax Act, 2025, which of the following does not qualify as an associated enterprise for transfer pricing?
Answer and explanation
Correct answer D
The holding of 25% does not meet the voting-power threshold. Section 162 of the Income-tax Act, 2025 uses a threshold of at least 26% for the shareholding relationships described, including a common holder with that level of voting power in each enterprise. The 27%, 30% and common 30%/34% holdings satisfy the applicable threshold.
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Jammu & Kashmir and Ladakh SET (JKSET/LASET)