Slump Sale – Section 2(103)(a) | Income-tax Act, 2025 vs 1961

§ 2(103)(a) · Income-tax Act, 2025

Slump sale

ITA 2025 · 2(103)(a) ITA 1961 · 2(42C)
Definition — Section 2(103)(a)

Means the transfer of one or more undertakings, by any means, for a lump sum consideration without values being assigned to the individual assets and liabilities in such transfer.

Act Comparison
Income-tax Act, 2025
2(103)(a)
Slump sale
Income-tax Act, 1961
2(42C)
Slump sale
Key Points
  • Maps to Section 2(42C) of the 1961 Act
  • Slump sales attract special capital gains provisions — maps to Section 50B of the 1961 Act
  • Net worth of the undertaking is the cost of acquisition for slump sale computation
💡 Practical Note

In a slump sale, you don't allocate price to individual assets — the entire business unit is sold for a lump sum. Gain = Sale Price minus Net Worth.

Published by Simplified Tax India — Clear, section-wise comparison of Income-tax Acts. ← Back to Section 2 Definitions Table
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