Definition of Related Party & Relatives : Section 2(76) & Section 2(77) of Companies act 2013 | Section 2(41) of Income Tax Act 1961

 I have tried to present a small comparison of definition of "RELATIVE" under Companies Act and Income Tax Act.

This both definition is very important for our daily compliances work.
And also it's very important to keep always remember for clientele purposes..

Hope this will help you all.
Thank you
Jai Hind

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Section 2(76), Companies Act 2013

 "related party", with reference to a company, means—

(i) a director or his relative;

(ii) a key managerial personnel or his relative;

(iii) a firm, in which a director, manager or his relative is a partner;

(iv) a private company in which a director or manager 1[or his relative] is a member or director;

(v) a public company in which a director or manager is a director 2[and holds] along with his relatives, more than two per cent of its paid-up share capital;

(vi) any body corporate whose Board of Directors, managing director or manager is accustomed to act in accordance with the advice, directions or instructions of a director or manager;

(vii) any person on whose advice, directions or instructions a director or manager is accustomed to act:

Provided that nothing in sub-clauses (vi) and (vii) shall apply to the advice, directions or instructions given in a professional capacity;

*****31[(viii) any body corporate which is—

(A) a holding, subsidiary or an associate company of such company;

(B) a subsidiary of a holding company to which it is also a subsidiary; or

(C) an investing company or the venturer of the company;";

Explanation.—For the purpose of this clause, “the investing company or the venturer of a company” means a body corporate whose investment in the company would result in the company becoming an associate company of the body corporate.]

(ix) such other person as may be prescribed;

List of Relatives in Terms of Clause (77) of section 2

A person shall be deemed to be the relative of another, if he or she is related to another in the following manner, namely:-

(1) Father:

Provided that the term “Father” includes step-father.

(2) Mother:

Provided that the term “Mother” includes the step-mother.

(3) Son:

Provided that the term “Son” includes the step-son.

(4) Son’s wife.

(5) Daughter.

(6) Daughter’s husband.

(7) Brother:

Provided that the term “Brother” includes the step-brother;

(8) Sister:

Provided that the term “Sister” includes the step-sister.

As per Section 2(41) of the Income Tax Act, 1961 

"relative", in relation to an individual, means the husband, wife, brother or sister or any lineal ascendant or descendant of that individual.

In case of any individual: 

1. Spouse of the individual 

2. Brother or sister of the individual 

3. Brother or sister of the spouse of the individual 

4. Brother or sister of either of the parents of the individual 

5. Any lineal ascendant or descendant of the individual

.6. Any lineal ascendant or descendant of spouse of the individual 

7. Spouse of the person referred in point 2-6 above 

In case of an HUF: Any member of the HUF