# The Finance Act, 2021, Section 21: Amendment of section 50B

- Act: The Finance Act, 2021
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-2021/section/21/

## Text

Amendment of section 50B. 21. In section 50B of the Income-tax Act,— (a) | for sub-section (2), the following sub-section shall be substituted, namely:— '(2) In relation to capital assets being an undertaking or division transferred by way of such slump sale,— (i) | the "net worth" of the undertaking or the division, as the case may be, shall be deemed to be the cost of acquisition and the cost of improvement for the purposes of sections 48 and 49 and no regard shall be given to the provisions contained in the second proviso to section 48; (ii) | fair market value of the capital assets as on the date of transfer, calculated in the prescribed manner, shall be deemed to be the full value of the consideration received or accruing as a result of the transfer of such capital asset.'; (b) | in Explanation 2, after clause (a), the following clause shall be inserted, namely:— "(aa) | in the case of capital asset being goodwill of a business or profession, which has not been acquired by the assessee by purchase from a previous owner, nil;".

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