Slump sale capital gains are taxed on transfer, with net worth based valuation and prescribed accountant reporting requirements. Capital gains arising from a slump sale are taxed in the year of transfer and are generally treated as long-term capital gains, except where the undertaking transferred has been held for thirty-six months or less, in which case the gain is treated as short-term capital gains. The assessee must furnish an accountant's report with computation of net worth and certification of correctness. Net worth is deemed to be the cost of acquisition and improvement, and the sale consideration is determined by prescribed fair market value 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.
Slump sale capital gains are taxed on transfer, with net worth based valuation and prescribed accountant reporting requirements.
Capital gains arising from a slump sale are taxed in the year of transfer and are generally treated as long-term capital gains, except where the undertaking transferred has been held for thirty-six months or less, in which case the gain is treated as short-term capital gains. The assessee must furnish an accountant's report with computation of net worth and certification of correctness. Net worth is deemed to be the cost of acquisition and improvement, and the sale consideration is determined by prescribed fair market value rules.
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