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Capital gains
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What does extinguishment of right mean? How does it amount to transfer?
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Thread Starter
Sai TejaBut Relinquishment of right is also same??
Relinquishment is used in terms of giving up an asset. Extinguishment is in terms of rights. Nature may be similar. Just that law covers all possible scenarios.
CA Suraj Lakhotia Admin
It is explained in class clearly. Did you not understand?
I will watch it again sir...
Say you booked a property by paying advance. Now you have entitlement to buy the property. The seller wants to sell to someone else. He offers you some amount to give up the right to buy property. This is extinguishment of rights. The amount that you receive will be subjected to capital gains.
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