WebJun 11, 2024 · As per section 2 (42C) of Income-tax Act 1961, ‘slump sale’ means the transfer of one or more undertakings as a result of the sale for a lump sum consideration without values being assigned to the individual assets and liabilities in such sales. The main elements of a slump sale are : 1. Sale of an undertaking [1]; 2. As a Going Concern [2] 3. WebJul 31, 2024 · Prior to the insertion of Section 50B under the Act which came into force on April 1, 2000, the capital gains tax on a slump-sale was computed as per the mechanism provided under Section 48 read with Section 45 of the Income Tax Act – the parent provisions governing capital gains and its computation.
Amendments relating to Slump Sale & Goodwill Finance Act 2024
WebMay 31, 2024 · (1) Any profits or gains arising from the slump sale effected in the previous year shall be chargeable to income-tax as capital gains arising from the transfer of long-term capital assets and shall be deemed to be the income of the previous year in which the transfer took place. WebMay 19, 2024 · What are the tax rates in case of slump sale? Taxability of capital gain depends upon the nature of capital assets which is 20% in case of Long Term Capital Gain … emily\u0027s pound cakes
EY Tax Alert
WebJun 16, 2024 · Secondly, under Indian tax laws, a slump sale transaction is subject to short/ long term capital gains tax, depending on the period for which the undertaking is held by the Seller. It is not subject to any indirect taxes such as GST. WebIf so, then the tax base of the land would be the same as its carrying amount as an indexation benefit is not available in case of slump sale under the Income-tax Act, 1961 (IT Act). Therefore, there would be no temporary difference and consequently DTA would not be recognised. (ITFG 7, Issue 7) WebMar 14, 2024 · The concept of slump sale has been defined under section 2(42C) of the Income Tax Act, 1961. After the amendments introduced in the Finance Act of 2024, a slump sale has been defined as a type of transfer where one or more undertakings of a business is transferred by any means for a lump sum consideration without assigning value to the ... emily\\u0027s power for a cure