Amendment proposed in the definition of the term “slump sale” u/s 2(42C) of the Income Tax Act, vide clause 3 of the Finance Bill 2022 (budget 2022-23):
1. Slump sale is defined in clause (42C) of section 2 of the Income Tax Act, as the transfer of one or more undertaking, by any means, for a lump sum consideration without values being assigned to individual assets and liabilities in such sales. Vide the Finance Act, 2021, the definition of “slump sale” was amended to expand its scope to cover all forms of transfer under slump sale. However, inadvertently, in the last sentence there is reference to the word “sales” instead of “transfer”.
2. Therefore, it is proposed to carry out consequential amendment by amending the provision of clause (42C) of section 2 of the Act, to substitute the word “sales” with the word “transfer”.
3. This amendment will take effect retrospectively from the 1st April, 2021 and will accordingly apply in relation to the assessment year 2021-22 and subsequent assessment years.
Summary of Direct/ Indirect Tax Proposals of Union Budget 2022-23