Slump sale of business under income tax act
WebbAccording to section 2(42) (C) of the Income Tax Act, 1961. For tax purposes, a slump sale is one in which an owner of the undertaking sells it without taking into account the … Webb4 juni 2024 · A slump sale can also be given effect by way of scheme of Arrangement under Section 230-232 of Companies Act, 2013 which requires the following approval: National Company Law Tribunal The Regional Director Income Tax Authorities Registrar of Companies Shareholders Creditors Board of Directors of the transferor entity
Slump sale of business under income tax act
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Webb13 nov. 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 … Webb10 jan. 2024 · Slump sale remains a popular form of reorganization, by which assets are transferred from one taxpayer to another. In cases other than a demerger or share transfer, an “undertaking” is transferred via slump sale.
Webb1. Applicable Sections for Slump Sale. Section 50B of Income Tax Act, 1961. Section 180 of Companies Act, 2013. 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. 2. Taxability on gains arising from ... Webb28 nov. 2010 · H. P. Ranina, Capital gains on slump sale, The Hindu Business Line, May17, 2008. ... Ashok Rao, Treatment of sale of websites under Income-tax Act, Financial Express, Feb 14, 2002.
Webb28 nov. 2010 · Article analyses the present position of laws through case study on Tax liability on Slump Sale. Article finally concludes with concerns related to Slump sale issue. Webb23 apr. 2024 · Slump sale has been recognized under Section 2 (42C) of the Income Tax Act, 1961. As per the provisions, slump sale has been defined as transferring one or …
Webb7 nov. 2024 · According to the rules, a slump sale sells multiple businesses at once without valuing the liabilities or assets separately. Even if the worth of individual assets is ascertained, it will be done solely to determine the amount to be paid for things like registration fees, stamp duties, and so on.
Webb29 apr. 2024 · The term’ slump sale’ has been defined under section 2 ( 42C) of the Income Tax Act, as follows: “slump sale” means the transfer of one or more undertaking, by any … fishing tackle shops hexhamWebb6 feb. 2024 · Successor liability risk. Under the Indian income-tax law, there is a risk that upon acquisition of a business, the buyer, as a successor, would inherit the tax liabilities, if any, of the seller. This risk is triggered in cases where the transferor cannot be found or where any tax liability is not recoverable from the transferor (for example ... cancer challenge 2021 crochetWebb28 maj 2024 · As per the rules notified by the Central Board of Direct Taxes, the consideration for business transfer or slump sale shall be computed based on the higher of the following: A. Net book value of ... cancer challenge 2022Webb22 maj 2024 · Section 2 (42C) of The Income Tax Act, 1961, recognises ‘Slump-Sale’ as a transfer of an ‘undertaking’ i.e. a part or a unit or a division of a company, ... Under the slump sale the business is sold on a ‘going concern basis’ that is there is transfer of all assets/ liabilities, contracts, ... fishing tackle shops edinburgh areaWebbIn accordance with Section 2 (42C) of the Income-tax Act 1961. A ‘Slump Sale’ means the transfer of one or more than one undertakings as a result of the sale for a lump sum consideration without the values being assigned to the individual assets and liabilities in such sales. In order to understand the meaning of Slump Sale we have to first ... fishing tackle shops grimsby cleethorpesWebbFor the purposes of income tax, a slump sale could be the one wherein an undertaking gets sold without having to consider the values of liabilities or assets, as contained in the … fishing tackle shops hayling islandWebb23 feb. 2024 · Slump Sale meaning as per Income Tax Act, 1961. Section 2(42C) defines a “slump sale” as “the transfer of one or more undertakings as a result of the sale for a … fishing tackle shops gateshead