Slump Sale

In simple terms, a "slump sale" refers to the transfer of an entire or a part of a business as a complete and ongoing operation.

In accordance with Section 50B of the Income Tax Act, 1961 read with rule 11UAE, two distinct fair valuations are mandated. The first involves the formula driven valuation, certificate is obtained by a Merchant Banker. The second pertains to the valuation of consideration received, which must be carried out by a qualified merchant banker or registered valuer.