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of <h1>Slump sale profits taxed as capital gains; long-term if held >36 months; net worth deemed acquisition cost; accountant's report required</h1> Profits from a slump sale are chargeable as capital gains in the year of transfer, treated as long-term unless the transferred undertaking(s) or division(s) were held for 36 months or less, in which case they are short-term. For such transfers, the undertaking's or division's net worth is deemed the cost of acquisition and improvement for specified provisions, and the fair market value (as prescribed) is deemed the full value of consideration. The assessee must file an accountant's report by the prescribed date computing and certifying net worth. 'Net worth' is aggregate assets less liabilities (ignoring revaluation), with depreciable assets at written down value, self-generated goodwill and fully expensed assets treated as nil, and other assets at book value.
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