Slump sale under Section 50B requires:
ASale of assets at market value (per relevant Section)
BTransfer of undertaking as going concern for lump-sum
CSale of company shares
DAuction sale
Answer & Solution
Correct answer: B. Transfer of undertaking as going concern for lump-sum
1. Section 2(42C) defines 'slump sale' as transfer of one or more undertakings for lump-sum without values assigned to individual assets/liabilities.
2. Section 50B computes gains based on net worth of undertaking.
3. Holding period of undertaking (not assets) determines ST/LT character.
_Source: ICAI BoS CA Final Paper 7, Ch 4 "Capital Gains"_
Related questions
'Equity-oriented fund' for Sections 111A/112A requires equity in domestic listed companiesCII for FY 2024-25 (AY 2025-26) is:Section 54B exemption requires:Capital gain on self-generated goodwill is:Market-linked debentures (MLDs) under Section 50AA are taxed at:Reference to Valuation Officer by AO under Section:Conversion of capital asset to stock-in-trade — capital gain:Section 54F exempts LTCG on: