Section 50B of Income Tax Act, 1961 deals with taxability of transfer of business in the nature of slump sale.

1) Any profits or gains arising from the slump sale effected is subject to income-tax as ‘Long-term or Short-term Capital Gains’, as the case may be.

The taxable gain is calculated as below:

Full value of consideration                xxx

(-) Expenses in relation to transfer   xxx

Net consideration                                 xxx

(-) Cost of acquisition/ Net worth     xxx

Capital Gain or (Loss)                         XXX