The term ” Relative” definition under various laws is given as under:
The term Relative as per Income Tax Act 1961, is defined under Section 2(41), which says husband, wife, brother, or sister or any lineal ascendant or descendent of that individual.
Income Tax Act contains various sections, which involve relationship between two individuals. These sections are as follow:
| 1 | Sec. 13(2) | Application of income / assets of charitable trust for the benefit of relatives of the trustee, founder, manager etc. |
| 2 | Sec.40A(2)(b) | Disallowance of payments made towards expenses to relatives of the assessee. |
| 3 | Sec. 56(2)(vii) | Charging of amount received as gift received by an individual or HUF |
| 4 | Sec. 64 | Clubbing of income in the case of spouse, daughter-in-law, minors out of assets transferred without consideration. |
| 5 | Sec. 79 | Disallowance of set-off of loss carried forward in the case of transfer of shares of a closely held company |
| 6 | Sec. 80 DD | Deduction in respect of medical treatment of a dependent who is a person with disability |
| 7 | Sec. 80 DDB | Deduction in respect of medical treatment of specified ailments of a dependent who is a person with disability |
| 8 | Sec. 92A | Associated Enterprises under Transfer Pricing Regulations |
The term “Relative” is defined under section 2(77) of the Companies Act, 2013 and the corresponding rules.
Accordingly, relative with reference to a person, means anyone who is related to another, if
- they are members of HUF;
- they are husband and wife; or
they relate as Father, Mother, Son, Son’s wife, Daughter, Daughter’s husband, Brother, Sister.*
*the step father, mother, sister and brother are included in above relationships
Post written by Akansha Srivastava
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