Startup & Business
Slump Sale — Meaning
Sale of a whole business undertaking for a lump sum, taxed under Section 50B on the gain over net worth.
What is Slump Sale?
A slump sale transfers an undertaking as a going concern for a lump-sum consideration without values being assigned to individual assets. Under Section 50B, the gain is the consideration (deemed at least fair market value) minus the undertaking's net worth; it is long-term if the undertaking was held for more than 36 months, taxed at 12.5% for transfers after 23 July 2024, without indexation. A transfer of business as a going concern is exempt from GST.
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Related terms
More Startup & Business terms
MCA (Ministry of Corporate Affairs)
India's government ministry administering the Companies Act and registering companies through the MCA portal.
ROC (Registrar of Companies)
Government authority under MCA that registers companies and LLPs and maintains statutory records.
DIN (Director Identification Number)
Unique 8-digit number assigned to every director of a company in India.
DSC (Digital Signature Certificate)
Electronic signature issued by certifying authorities — required for filing company/LLP documents with MCA.
Private Limited Company
A separate legal entity incorporated under the Companies Act 2013 — most common startup structure.
