Income Tax : The distinction between slump sale and itemised asset sale determines how capital gains are taxed. A true slump sale applies Secti...
Income Tax : This article explains the requirement to file Form 28 under Section 77(4) for slump sale transactions. The key takeaway is that fi...
Income Tax : A slump sale involves transferring an undertaking for a lump-sum consideration without breaking down individual asset values. It s...
Income Tax : Slump sale is a concept that plays a critical role in restructuring and consolidation of businesses. Under Income-tax Act a slump ...
Income Tax : Discover key insights on Global Anti-Base Erosion Model Rules (GloBE) for M&A strategies. Learn about Income Inclusion and Underta...
Income Tax : Reopening notices under Section 148 were quashed as the petitioner’s depreciation claims on a slump sale of an injectable busine...
Income Tax : Court considered whether admissions made by seller in settlement proceedings could affect purchaser’s depreciation claim. It hel...
Income Tax : High Court ruled that an AO's failure to determine if a unit sale was a slump sale (S.50B) or short-term capital gain (S.50) made ...
Goods and Services Tax : Gujarat AAR ruled that the ₹60 crore transfer of RDB Realty s Surat housing project qualifies as a transfer of a going concern a...
Income Tax : ITAT ruled in Grasim Industries that a court-sanctioned scheme transfer before the 2021 amendment is a transfer by law, not a slum...
Income Tax : CBDT notifies Rule 11UAE Computation of Fair Market Value of Capital Assets for the purposes of section 50B of Income-tax Act, 196...
Whether Sum Received By Holding Company From Subsidiary Under Scheme Approved By High Court -Considered As Slump Sale Whether any sum received from a subsidiary company by a holding company under scheme of arrangement sanctioned by High Court under provisions of Section 391 to 394 of the Companies Act, 2013 , be treated as ‘Slump […]
Emil Pharmaceutical Industries Private Limited Vs DCIT (ITAT Mumbai) In this case learned CIT(A) has noted that the assessee has not produced supporting documents such as the list of employees at the time of the sale, electricity bills and other details necessary to establish the existence of an undertaking in a continuous business. Furthermore, we […]
Section 50B read with Section 48 of the Act provides that capital gains on slump sale will be the difference between the full value of the consideration received/ accruing as a result of transfer of capital asset and the net worth of the undertaking sold.
What is Slump Sale: ♦ A slump sale for income tax purposes would be one where an undertaking is sold without considering the individual values of the assets or liabilities contained within the undertaking. ♦ It may be important to note here that finding out individual values may be of relevance only for the purpose […]
♦ Introduction The Finance Act 2021 has amended the provisions related to slump sale. It has amended the scope of the definition of the term slump sale by amending the provision of clause (42)(C) of section 2 of the Act so that all types of transfer as defined in clause (47) of section 2 of […]
RULES FOR VALUATION OF ASSETS IN CASE OF SLUMP SALE NOTIFIED: Earlier due to non prescribed rules for the purpose of section 50B, Net assets transferred were valued at the book value. Now CBDT notified Rule 11UAE computation of FMV of capital assets for the purpose of section 50B of the income tax act, 1961 […]
CBDT notifies Rule 11UAE Computation of Fair Market Value of Capital Assets for the purposes of section 50B of Income-tax Act, 1961 vide Notification No.68/2021 Dated 24th May, 2021. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) New Delhi Notification No. 68/2021 – Income Tax Dated: 24th May, 2021 G.S.R. 338(E).— In […]
Finance Act, 2021 made several significant amendments in many fronts. One of such amendment is with respect to scope of slump sale and computation of capital gains in case of slump sale with effect from assessment year 2021-22 (FY 2020-21). Section 50B of Income Tax Act, 1961 provides the special provision for computation of capital […]
Section 50B of the Act contains special provision for computation of capital gains in case of slump sale. Sub-section (42C) of section 2 of the Act defines ‘slump sale’ to mean the transfer of one or more undertakings as a result of sale for lump sum consideration without value being assigned to individual assets and […]
Applicability of deeming provisions of Section 56(2)(x) of Income Tax Act to buyer of undertaking under Slump Sale under section 50B of Income Tax Act, 1961 There were lots of controversies about taxation of such a sale of business as a going concern due to period of holding of the assets etc. To resolve the […]
