Capital Gains Taxation in Slump Sales: Clause 77 of the Income Tax Bill, 2025 vs. Section 50B of the Income Tax Act, 1961

Capital gains treatment for slump sales clarified: net worth valuation and accountant certification required for tax computation.

The computation treats the net worth of the transferred undertaking-aggregate assets less liabilities, excluding revaluation increases-as the cost of acquisition; where lump sum consideration diverges from market values, the fair market value of assets on the transfer date is deemed the full value of consideration. Depreciable assets use written down value, certain goodwill and specified assets are valued at nil, and an accountant's report certifying the net worth computation is required.