Rule 183 - Computation of income applied for benefit of a related person

Related person income computation. 183. (1) For the purposes of section 337 [Table: Sl. No. 2], any income or part thereof applied directly or indirectly for the benefit of any related person during the tax year shall be computed in the manner provided in sub-rule (2), in the following circumstances— (a) any part of the income or property of the registered non-profit organisation is, or continues to be, lent to any related person for any period during the tax year without adequate security; (b) any part of the income or property is, or continues to be, lent to any related person without adequate interest; (c) any land, building or other property is, or continues to be, made available for the use of any related person without charging adequate rent or other compensation; (d) any amount is paid by way of salary, allowance or otherwise to any related person for services rendered, in excess of what may reasonably be paid for such services; (e) any services or goods are made available to any related person without adequate consideration or other compensation; (f) any share, security or other property is purchased from any related person for more than adequate consideration; (g) any share, security or other property is sold to any related person for less than adequate consideration; (h) any income exceeding Rs. 1,000 in aggregate is diverted in favour of any related person; (i) any property exceeding Rs. 1,000 in value is diverted in favour of any related person; or (j) any funds are, or continue to remain, invested (for any period not before 1 January 1971) in any concern in which any related person has a substantial interest. (2) The income referred to in sub-rule (1) shall be the value of any benefit or facility granted or provided free of cost or at a concessional rate to the related person. (3) For the purposes of this rule, "related person" has the meaning assigned to it in section 355(h).