Capital gains on slump sale: net worth deemed cost and accountant certification required for tax computation. Profits from a slump sale are chargeable as capital gains in the year of transfer and classified as short-term if the undertaking was held for not more than thirty-six months; otherwise long-term. For such transfers, the net worth of the undertaking or division is deemed to be the cost of acquisition and cost of improvement for computing capital gains, with certain proviso exclusions not to be considered. The assessee must file, with the return, a prescribed accountant's report certifying the net worth computation under the section's rules.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Capital gains on slump sale: net worth deemed cost and accountant certification required for tax computation.
Profits from a slump sale are chargeable as capital gains in the year of transfer and classified as short-term if the undertaking was held for not more than thirty-six months; otherwise long-term. For such transfers, the net worth of the undertaking or division is deemed to be the cost of acquisition and cost of improvement for computing capital gains, with certain proviso exclusions not to be considered. The assessee must file, with the return, a prescribed accountant's report certifying the net worth computation under the section's rules.
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