Mr. Paras has a proprietary business since P.Y. 2015-16. He has transferred this business on 01.04.2023 by way of a slump sale for a total…

Computation of capital gains on slump sale for A.Y. 2024-25 Particulars ₹ Full value of consideration [Higher of (i) FMV of capital assets on 1.4.2023 of 35lakhs or (ii) FMV of Monetary consideration received of 40lakhs] 40,00,000 Less: Expenses for transfer 1,50,000 38,50,000 Less: Net worth (See Note below) 21,90,000 Long-term capital gain, since the business is held for more than 36 months [Indexation benefit not available] 16,60,000 Note - Computation of net worth Building 1 18,00,000 Machinery 2 [₹ 5,00,000 -50,000, being the amount allowed as 100% as deduction u/s 35AD] 4,50,000 Debtors 5,00,000 Other assets (₹ 3,60,000 -60,000, being the amount of self-generated goodwill) 3,00,000 Total assets 30,50,000 Less: Bank Loan (₹ 5,00,000 -2,00,000, being loan for personal purpose) 3,00,000 Unsecured Loan (₹ 2,50,000 -1,00,000, being the amount payable for purchase of ornaments of his wife) 1,50,000 Creditors 4,10,000 8,60,000 Net worth 21,90,000 1 Assuming Balance Sheet values represent the written down value of building as per section 43(6)(c). 2 Assuming Balance Sheet values represent the written down value of machinery as per section 43(6)(c).