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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Tax Planning and Business Restructuring

Which statement about reporting requirements for a slump sale under section 77 of the Income-tax Act, 2025 is correct?

The assessee must furnish an accountant's report in the prescribed form before the specified date referred to in section 63. The report includes the computation of net worth and certifies that it was correctly arrived at under section 77. The requirement applies to every slump sale.

  1. ANo accountant's report is needed if the gain is long-term
  2. BThe report must be filed in the prescribed form before the specified date referred to in section 63, with the net worth computationCorrect
  3. CThe report is filed only by the buyer of the undertaking
  4. DThe report need only certify the sale consideration, not net worth

Explanation

Section 77(4) requires every assessee in a slump sale to furnish an accountant's report in prescribed form before the specified date under section 63. It must include the net worth computation and certify it was correctly arrived at. It applies regardless of the nature of gain.

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