Who are interested persons in the case of Charitable Trust, NGO,
Charitable Society, Section 25 Companies and Charitable entities?
Who are relatives? List of interested persons and relatives.
In case of Charitable organizations interested persons
and relatives have important role. The genuineness of the
charity may be questioned due to amount spend for the
benefit of specified persons. In the Income Tax Act
interested persons and relatives are defined as under:-
Who are interested persons?
Interested persons may be:-
1. The author of the trust or the founder of the institution.
2. Any person who has made a substantial contribution to the trust or
institution that is to say, any person whose total contribution up to the end of
the relevant previous year exceeds fifty thousand rupees.
3. Where such author, founder or person is a Hindu undivided family, a member of
4. Any trustee of the trust or manager, (by whatever name called) of the
5. Any relative of any such author, founder, person, member, trustee or manager
6. Any concern in which any of the persons referred to in clauses 1,2,3,4 and 5
(above) has a substantial interest.
Who are Relatives?
Relatives may be:-
1. Spouse of the individual.
2. Brother or sister of the individual.
3. Brother or sister of the spouse of the individual.
4. Any lineal ascendant or descendant of the individual.
5. Any lineal ascendant or descendant of the spouse of the
6. Spouse of a person referred to in 2,3,4 or 5 above.
7. Any lineal descendant of a brother or sister of either the
individual or of the spouse of the individual.