A slump sale is a strategic business transfer where an entire undertaking or business unit is sold for a lump sum consideration, without itemizing individual assets or liabilities. Commonly used in corporate restructuring, slump sales allow companies to transfer operations efficiently. Taxation on slump sales is governed by Section 50B of the Income Tax Act 1961, with capital gains calculated based on the net worth of the business. Understanding slump sale tax implications is crucial for effective planning and compliance.
