In a slump sale of an undertaking owned and held for 5 years, which statement is correct?

1. Section 50B governs slump sale: transfer of an undertaking for a lump sum without item-wise values. 2. An undertaking held for more than 36 months yields long-term capital gains — the only 36-month rule in this head; 5 years qualifies. 3. The cost of acquisition and improvement is deemed to be the NET WORTH of the undertaking (assets minus liabilities per books). 4. In computing net worth, any revaluation of assets is ignored; depreciable assets enter at tax WDV, section 35AD assets and self-generated goodwill at Nil. 5. Full value of consideration is the higher of FMV of the capital assets transferred and FMV of the consideration received. 6. No indexation is available in a slump sale irrespective of the transfer date — which is exactly why option A is wrong despite sounding like the general rule. Option D confuses slump sale with section 50 depreciable assets; option B contradicts the express bar on revaluation. _Source: ICAI CA Inter P3(A) Income-tax SM (May 2026), Ch 3 Unit 4 Capital Gains, PDF p. 57_