Section 50b of income tax act 1961

Section 50B of Income Tax Act provides for 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 Author: Suresh Prasad. Section - 50B, Income-tax Act, Previous Next 50B. (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. 50B. (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.

Section 50b of income tax act 1961

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Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy. While the taxability section 50b of income tax act 1961 slump sale in the hands of a seller is clearly spelt out by the provisions of section 50B of the Income-tax Act, IT Actthe law seems to be ambiguous when it comes to the buyer. Section of the IT Act governs the taxation in case of succession of a business. As a general rule, where a business is succeeded by any other person, who subsequently continues to carry on that business, the predecessor is assessed for the income of the Fiscal Years FY prior to the date of succession and the successor is assessed on the income of the FYs after the date of succession. Taxpayer, an Indian private limited company, entered into Business Transfer Agreement BTA with an unrelated Indian private limited company transferor for purchase of an undertaking on a slump sale basis. As per the BTA, the taxpayer acquired various assets including goodwill from the transferor company. Consequently, the taxpayer ascertained the fair value FMV of icnome assets and added them to the existing Written Down Value WDV of respective block of assets and claimed depreciation. The tax officer treated txx slump sale amounted to succession and hence the provisions of Section of the Act gets attracted. However, the First Appellate Authority observed that the diquigiovanni serramenti pvc facebook stock of the motor vehicle and furniture and fixture as per the valuation report was less than the corresponding closing WDV in the books of the rpes 2009 v2 torrent at the time of transfer. Before the Tax Tribunal, the main controversy involved was whether the zct of Section sectkon the IT Act, which pertains to succession of section 50b of income tax act 1961, gets attracted in case of business transferred on a slump sale basis and thereby invoking the sixth proviso to Section 32 of the IT Act. As the taxpayer has succeeded the tad company, the provisions of section of the IT Act are applicable on the ta of the present case. Consequently, the depreciation claim would be governed by sixth proviso to ac 32 1 of the IT Act.

The Income Tax Department NEVER asks for your PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts through e-mail.. The Income Tax Department appeals to taxpayers NOT to respond to such e-mails and NOT to share information relating to their credit card, bank and other financial accounts. Special provision for computation of capital gains in case of slump saleB. (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. Apr 19,  · For the assessment year , the petitioner had disclosed loss of more than Rs crores in their return. The book loss computed under Section JB of the Income Tax Act, (Act, for short) was more than Rs crores. No return was filed for the assessment year Section 50B of Income Tax Act provides for 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 Author: Suresh Prasad. Oct 19,  · SECTION 50 OF INCOME TAX ACT, IS NOT APPLICABLE TO CAPITAL GAINS IN SLUMP SALE. On the other hand, under Section 50B the asset has to be first classified between long term or short term capital asset and then for the purpose of Sections 48 and 49 net worth has to be computed in terms of Explanation 1 to the said section. The capital gain under Section 50B is the . Section 50C of Income-Tax Act, HomeIndian LawActsIncome-Tax Act, Section 50C of Income-Tax Act, deals with Special provision for full value of consideration in certain cases of depreciable assets. Sep 03,  · Answer Wiki. Section 54B of Income Tax Act provides for tax exemption on long term capital gains from sale of agricultural land provided that: The land was held by the assessee for minimum 36 months, to be eligible for long term capital gains. Section 54B applies to an individual or Hindu Undivided Family. Provision of [Section 50C of Income-Tax Act, |section 50C]] is applicable to transfer of depreciable capital assets covered by section 50 There is no exclusion of applicability of one fiction in a case where other fiction is applicable; as a matter of fact, there is no conflict between these two legal fictions which operate in different fields. Section - 50C, Income-tax Act, - 85[Special provision for full value of consideration in certain cases. 85a 50C.(1) Where the consideration received or . Section - 50B, Income-tax Act, Previous Next 50B. (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. 50B. (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. Section 50A and 50B of Income Tax Act Special provision for cost of acquisition in case of depreciable asset and Special provision for computation of capital gains in case of slump sale are defined under section 50a and 50b of Income Tax Act Provisions under these sections are. May 19,  · Here we are explaining taxation on slump sale as per section 50B of the Income Tax Act, What is Slump Sale & Section 50B of the Income Tax Act? Under section 50B, special provisions are given to calculate capital gain or loss in case of slump sale. First of all let’s understand “What is the meaning of slump sale”? The Income-tax Act (the Act) is an engaging enactment and one of the most interesting chapters is. “Capital Gains”. In the chapter dealing with capital gains, the legislature felt the necessity to make adequate provisions to safeguard the interest of the Revenue by taxing the profits arising out of transfer of business undertakings as there were no specific provisions under the Indian. Provisions of section 50B are not applicable if the transaction is not a sale but exchange. 1. Introduction: Section 50B of Income Tax Act, (for short ‘the Act’) deals with the capital gains in the case of Slump sale. 2. Bennett Coleman & bedingungslos-befluegelt.de in brief: Recently, in Bennett Coleman & bedingungslos-befluegelt.de v.After section 50A of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, , namely:—. '50B Special provision for. 50B. (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 acquisition and the cost of improvement for the purposes of sections 48 and 49 Explanation 1 and Explanation 2 substituted for Explanation by the Finance Act, The gain or loss resulting out of a slump sale shall be a Capital Gain/Loss under the Income Tax Act. The computation has been prescribed as. As per section 2(42C) of Income -tax Act , 'slump sale' means the transfer Section 50B reads as 'Special provision for computation of capital gains in case. Section 50B of Income Tax Act, (for short 'the Act') deals with the capital gains in the case of Slump sale. 2. Bennett Coleman & bedingungslos-befluegelt.de in. Section 50B of the Income-tax Act, provides the mechanism for computation of capital gains arising on slump sale. On a plain reading of. Under Indian Income Tax Act, slump sale means the transfer of one or more undertakings as a result of sale for a lump sum consideration. A slump sale has been defined under the Income Tax Act, as: “the qualify as a slump sale under Section 50B of the Act, even if the agreement referred to. As per S.2(42C) of Income Tax Act, , unless the context of income, in case of slump sale, under sub-section (3) of section 50B shall be in. sale is a genuine slump sale which qualifies for the tax treatment under Section 50B of the Income-tax. Act, The tax department in this case contended that . - Use section 50b of income tax act 1961 and enjoy FAQs On Slump Sale Under The Income-tax Act, – Articles

CA Vinay V. Kawdia has explained the entire law, relating to the taxation of a slump sale under sections 2 42C and 50B of the Income-tax Act, , in the format of a FAQ. He has answered all conceivable questions and also referred to all the important judgements on the subject. The implications under the GST have also been briefly referred to. Section 50B. 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. Explanation 1. 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. Section 2 42C : "slump sale" means the transfer of one or more undertakings as a result of the sale for a lump sum consideration without values being assigned to the individual assets and liabilities in such sales. Explanation 1 to S. The capital gain or loss computed as above will be either long term capital gain LTCG or short term capital gain STCG depending upon the period for which the undertaking is held. It is to be noted that, for computing the net worth, the assets on which deduction has been allowed under section 35AD and if such assets are transferred under slump sale, the value of such assets shall be taken as NIL. Section 50C is not applicable to all the capital assets but only to a capital asset which is land or building or both. It is, therefore, manifest that even if the assets of the undertaking, which is subject matter of transfer, include land or building or both, the stamp value shall be ignored insofar as the computation of full value of consideration of the undertaking as a whole is concerned.

See more ia drang pariwisata lumajang Investment Immigration. The High Court has, however, missed the fact that the definition also mentions such transactions as sale, exchange etc. That the arrangement is such as which a prudent, intelligent or honest man or a member of the class concerned and acting in respect of the interest might reasonably take. The content of this article is intended to provide a general guide to the subject matter. Slump sale, as then understood, meant transfer of business as a going concern, and therefore, it was not possible to determine the actual cost namely the cost of acquisition even though, in a given case, it might be a generated asset [see CIT vs. However, based on several judicial precedents 6 , the Tribunal held that the balancing figure between the value of slump sale consideration and the WDV of assets taken over shall qualify as goodwill, and eligible for consequent depreciation. Section 50B. All Rights Reserved. The Companies Act, , on the other hand serves, and is intended to serve a different purpose and, therefore, when a scheme under Sections of the Companies Act, is sanctioned by the Court, it is treated as a binding statutory scheme because the scheme has to be implemented and enforced. Section of the IT Act governs the taxation in case of succession of a business. Taxpayer, an Indian private limited company, entered into Business Transfer Agreement BTA with an unrelated Indian private limited company transferor for purchase of an undertaking on a slump sale basis. The contention was rejected in the following words by the Supreme Court It was held that the said chapter was enacted for compulsory purchase, when a property was sold by making significant undervaluation with the intention of evading tax. Arbitration, Litigation and Conciliation. However, considering the fact that the Tribunal has acknowledged and upheld that difference between slump sale value and book value of assets acquired on a slump sale basis qualify as goodwill, and eligible for consequential depreciation, it seems that the overall impact of this decision to some extent has been neutralised. Extend Vivad Se Vishwas Scheme due date to Income Tax Department conducts searches in Chandigarh.