Direct Tax

Tax queries 2652 views 2 replies

sunkara siva tanush

CMA Final Student

44 Points Joined June 2010

1)what is the difference between section 28 (Profit and Gains from Bussines or Profession) And section 45 of (Captial Gains) ?

1) Section28 Any sum whether received (or) receivable in cash or kind, under an agreement for not carrying out any activity in relation to any business (or) not to share any Know-how,patent,copyright, trademark,licence,franchise (or) any other business (or) commerical right of similar nature (or) information (or) technique likely to assist in the manufacture (or) processing of goods (or) provision for service....

2) Section2(47) Transfer, in relation to a capital asset, includes sale, exchange (or) Relinquishment of the asset or the Extinguishment of any rights there in (or) the compulsory acquistion there of under any law....

2)what is the difference between Relinquishment and Extinguishment?

plz let me know

Thank you

Tanush

Replies (2)

Guest

dear freind tanush

sec28 describe amount received on not carrying out any activity so there is no transfer of a asset. if in the same case if there is any transfer then it will be covered u/s 45.

relinquishment and extinguishment are two different things.e.g -surrender of prefrence share on redemption amounts to relinquishment of right and reduction in face value of shares and subsequently amount paid by the company on that reduction amounts to extinguishment. relinquishment refers to leave a thing and exteng. refers to ceasing of existance of a asset.

regards

tarun rustagi