New Slump Sale Valuation Rules Prescribed

Section 50B of the Income Tax Act, 1961 (‘Act’) dealing with Slump Sale has been substantially amended by the Finance Act, 2021. One of the amendments made to these provisions is around the Fair Market Value (‘FMV’) of the Undertaking (that is being transferred) which can be considered as the Full Value of Consideration for computing capital gains. These amendments were retroactive in nature, being applicable from FY20-21.