India Tax & Regulatory
Section 50B Slump Sale Tax Treatment
The Income Tax Act provision taxing gains on a slump sale as capital gains computed on the undertaking's "net worth," rather than item-wise fair market valuation.
Buyer Example
Buyer structuring a ₹32 Cr acquisition of a Chennai plastics compounding business as a slump sale confirms with tax counsel that the seller's capital gains are computed against net worth (book assets minus liabilities, ignoring self-generated goodwill) — buyer uses this to negotiate part of the price into a separately-taxed non-compete fee, easing overall negotiation friction.