Deal Structuring
Slump Sale
Transfer of an entire business undertaking as a going concern for a lump-sum consideration, without itemized asset/liability valuation, taxed as capital gains on the undertaking's net worth under Section 50B.
Seller Example
Promoter selling a precision components unit in Chennai for ₹28 Cr structures it as a slump sale so capital gains tax is computed on the low book "net worth" (say ₹6 Cr) rather than a higher item-wise asset valuation, and negotiates that only liabilities specifically scheduled in the BTA transfer — keeping unrelated legacy contracts with the seller entity to avoid future indemnity exposure.