Understanding Slump Sales: Tax Implications and Benefits for Business Transfers in India Under Specific Provisions.

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....A slump sale in India refers to the transfer of one or more undertakings as a lump sum consideration without assigning individual values to assets and liabilities. This method of business transfer has specific tax implications under the Indian Income Tax Act, which treats the gains from such sales as capital gains. The benefits of slump sales include simplified transaction processes and potential tax advantages, such as deferring tax liabilities. However, businesses must carefully evaluate the tax implications and ensure compliance with relevant legal provisions to optimize the benefits of a slump sale.....