Income Tax Act, 2025
Section 5: Ins. by Act 21 of 1998, s. 23 (w.e.f. 11998).
5. Ins. by Act 21 of 1998, s. 23 (w.e.f. 11998).
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1[50B. Special provision for computation of capital gains in case of slump sale.—(1) Any profits
or gains arising from the slump sale effected in the previous year shall be chargeable to income-tax as
capital gains arising from the transfer of long-term capital assets and shall be deemed to be the income of
the previous year in which the transfer took place:
Provided that any profits or gains arising from the transfer under the slump sale of any capital asset
being one or more undertakings owned and held by an assessee for not more than thirty-six months
immediately preceding the date of its transfer shall be deemed to be the capital gains arising from the
transfer of short-term capital assets.
(2) In relation to capital assets being an undertaking or division transferred by way of such sale, the
“net worth” of the undertaking or the division, as the case may be, shall be deemed to be the cost of
acquisition and the cost of improvement for the purposes of section 48 and 49 and no regard shall be
given to the provisions contained in the second proviso to section 48.
(3) Every assessee, in the case of slump sale, shall furnish in the prescribed form along with the return
of income, a report of an accountant as defined in the Explanation below sub-section (2) of section 288,
indicating the computation of the net worth of the undertaking or division, as the case may be, and
certifying that the net worth of the undertaking or division, as the case may be, has been correctly arrived
at in accordance with the provisions of this section.
2[Explanation 1.—For the purposes of this section, “net worth” shall be the aggregate value of total
assets of the undertaking or division as reduced by the value of liabilities of such undertaking or division
as appearing in its books of account:
Provided that any change in the value of assets on account of revaluation of assets shall be ignored for
the purposes of computing the net worth.
Explanation 2.—For computing the net worth, the aggregate value of total assets shall be,—
(a) in the case of depreciable assets, the written down value of the block of assets determined in
accordance with the provisions contained in sub-item (C) of item (i) of sub-clause (c) of
clause (6) of section 43; 3***
4[(b) in the case of capital assets in respect of which the whole of the expenditure has been
allowed or is allowable as a deduction under section 35AD, nil; and
(c) in the case of other assets, the book value of such assets.]]]
5[50C. Special provision for full value of consideration in certain cases.—(1) Where the
consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land
or building or both, is less than the value adopted 6[or assessed or assessable] by any authority of a State
Government (hereafter in this section referred to as the “stamp valuation authority”) for the purpose of
payment of stamp duty in respect of such transfer, the value so adopted 6[or assessed or assessable] shall,
for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as
a result of such transfer.]
7[Provided that where the date of the agreement fixing the amount of consideration and the date of
registration for the transfer of the capital asset are not the same, the value adopted or assessed or
assessable by the stamp valuation authority on the date of agreement may be taken for the purposes of
computing full value of consideration for such transfer:
Any profits
or gains arising from the slump sale effected in the previous year shall be chargeable to income-tax as
capital gains arising from the transfer of long-term capital assets and shall be deemed to be the income of
the previous year in which the transfer took place:
Provided that any profits or gains arising from the transfer under the slump sale of any capital asset
being one or more undertakings owned and held by an assessee for not more than thirty-six months
immediately preceding the date of its transfer shall be deemed to be the capital gains arising from the
transfer of short-term capital assets.
In relation to capital assets being an undertaking or division transferred by way of such sale, the
“net worth” of the undertaking or the division, as the case may be, shall be deemed to be the cost of
acquisition and the cost of improvement for the purposes of section 48 and 49 and no regard shall be
given to the provisions contained in the second proviso to section 48.
Every assessee, in the case of slump sale, shall furnish in the prescribed form along with the return
of income, a report of an accountant as defined in the Explanation below sub-section
of section 288,
indicating the computation of the net worth of the undertaking or division, as the case may be, and
certifying that the net worth of the undertaking or division, as the case may be, has been correctly arrived
at in accordance with the provisions of this section.
2[Explanation 1.—For the purposes of this section, “net worth” shall be the aggregate value of total
assets of the undertaking or division as reduced by the value of liabilities of such undertaking or division
as appearing in its books of account:
Provided that any change in the value of assets on account of revaluation of assets shall be ignored for
the purposes of computing the net worth.
Explanation 2.—For computing the net worth, the aggregate value of total assets shall be,—
in the case of depreciable assets, the written down value of the block of assets determined in
accordance with the provisions contained in sub-item
of item
of sub-clause
of
clause
of section 43; 3***
4[
in the case of capital assets in respect of which the whole of the expenditure has been
allowed or is allowable as a deduction under section 35AD, nil; and
in the case of other assets, the book value of such assets.]]]
5[50C. Special provision for full value of consideration in certain cases.—
Where the
consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land
or building or both, is less than the value adopted 6[or assessed or assessable] by any authority of a State
Government (hereafter in this section referred to as the “stamp valuation authority”) for the purpose of
payment of stamp duty in respect of such transfer, the value so adopted 6[or assessed or assessable] shall,
for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as
a result of such transfer.]
7[Provided that where the date of the agreement fixing the amount of consideration and the date of
registration for the transfer of the capital asset are not the same, the value adopted or assessed or
assessable by the stamp valuation authority on the date of agreement may be taken for the purposes of
computing full value of consideration for such transfer: