SLUMP SALE short notes

Posted on 08-05-2016        By ADMIN

SLUMP SALE  short notes 

Slump sale [sec 2(42C)] : means transfer of one or more undertakings as a result of the sale for a lump sum consideration w/o values being assigned to the individual assets and liabilities in such sales.  

Charge and nature of CG:  

P&G arising from slump sale shall be taxable as “CG” in PY in which slump sale is effected. If the capital asset, being one or more undertakings, was owned and held by the assessee for not more than 36 months, the CG will be “STCG”. In any other case, it shall result into LTCG.  

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