How Relatives Affect Taxation of Income in Six Types of Transactions !

Income Tax Act has provisions which are dependent upon the transactions with relatives and the you may have to pay tax more, may be required to have more legal compliance only due to reason that certain transactions were with your “relatives”.It is also important to note that the meaning of term “relative” is not same everywhere in the Income Tax Act as it has been defined at more than one place. For example, section 2(41) of I.T.Act defines the term relative generally , but even section 56(2) defines it or section 13 defines it. This post is written to make readers aware about transactions with relatives which may affect the tax on the income.