Query on Income Tax Act

sec 2(47) of income tax act define the meaning of transfer for the purpose of capital gain......

relinquishment means to give up or surrender.....(voluntarily giving any assets to someone)

extinquishment means not to exixts(khatam ho jana)......(depreciable assets stolen  ).

Demutualisation

The process of changing a mutual or cooperative association into a public company by converting the interests of members into shareholdings, which can then be traded through a stock exchange. Examples of mutuals in Australia are building societies, credit unions and some large insurance institutions. Their structure limits their activities to servicing their members and inhibits their ability to pursue profits and diversification as freely as companies.

regards,

ratan

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I am running a Sole Proprieter firm, total transaction in present financial year is less than 2 lakhs. how to calculate my income tax ?

ur firm will be assessed as individual person. at present income ur tax liability will be around for ex, ur income is Rs. 195000, tax will be Rs.(195000-160000)*10% = Rs. 3500

This tax burden will be reduced by showing ur savings and investments as well.

for further any query mail me at ratan_deep1 @ yahoo.co.in.

keep smiling.

regards,

ratan