Form 3CEA, Download Income Tax Form 3CEA in PDF Format

FORM NO. 3CEA for Report of an Accountant Relating To Computation of    Capital Gains in Case Of Slump Sale. FORM NO. 3CEA is applicable to an assessee whose total income includes any profits or gains from a ‘slump sale’ as defined in section 2(42C) of the Act.

(1) Any profits or gains arising from the slump sale affected in the previous year shall be chargeable to income-tax as capital gains arising from the transfer of long-term capital assets and shall be deemed to be the income of the previous year in which the transfer took place:

Provided that any profits or gains arising from the transfer under the slump sale of any capital asset being one or more undertakings owned and held by an assessee for not more than thirty-six months immediately preceding the date of its transfer shall be deemed to be the capital gains arising from the transfer of short-term capital assets.

(2) In relation to capital assets being an undertaking or division transferred by way of such sale, 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.

(3) Every assessee, in the case of slump sale, shall furnish in the prescribed form along with the return of income, a report of an accountant as defined in the Explanation below sub-section (2) of section 288, indicating the computation of the net worth of the undertaking or division, as the case may be, and certifying that the net worth of the undertaking or division, as the case may be, has been correctly arrived at in accordance with the provisions of this section.

Explanation 1.—For the purposes of this section, “net worth” shall be the aggregate value of total assets of the undertaking or division as reduced by the value of liabilities of such undertaking or division as appearing in its books of account :

Provided that any change in the value of assets on account of revaluation of assets shall be ignored for the purposes of computing the net worth.

Explanation 2.—For computing the net worth, the aggregate value of total assets shall be,—

 (a) in the case of depreciable assets, the written down value of the block of assets determined in accordance with the provisions contained in sub-item (C) of item (i) of sub-clause (c) of clause (6) of section 43;

(b) in the case of capital assets in respect of which the whole of the expenditure has been allowed or is allowable as a deduction under section 35AD, nil; and

 (c) in the case of other assets, the book value of such assets

FORM NO. 3CEA

                                                [See rule 6H]

Report of an accountant to be furnished by an assessee under sub-section (3)
of section 50B of the Income-tax Act, 1961 relating to computation of
capital gains in case of slump sale

1.

Particulars of the assessee effecting the slump sale

 

(a)

Name

(b)

Address

(c)

Permanent account number

(d)

Nature of business

 

2.

Details of the undertaking or division, transferred by way of slump sale

(a)

Address/location

(b)

Nature of business

 

3.

Name, address and permanent account number of the person who has purchased the undertaking or division referred to in item 2

4.

Date of slump sale of the undertaking or division referred to in item 2

 

5.

Amount of consideration received for slump sale referred to in item 2

 

6.

Net worth of the undertaking or division referred to in item 2 :

(a)

In the case of depreciable assets, written down value of the assets of the undertaking or division transferred by way of slump sale, determined in accordance with sub-item (c) of item (i) of sub-clause (c) of clause (6) of section 43.

Rs.

(b)

In the case of other assets, book value of such assets

Rs.

(c)

Aggregate value of total assets of the undertaking or division transferred by way of slump sale [(a) + (b)]

Rs.

(d)

Value of liabilities relatable to the undertaking or division as appearing in the books of accounts

Rs.

(e)

Net worth of the undertaking or division [(c) – (d)]

Rs.

Signed

Chartered Accountant

Certification

I/WE ________(name) have examined the accounts and records of ___________(name and address of the assessee) during the year ended on
I/We have obtained all the information and explanations which to the best of my/our knowledge and belief were necessary for the purposes of ascertaining and computing the net worth of the undertaking or division which has been transferred by way of slump sale. I/We certify that the net worth of the undertaking or division has been computed correctly in accordance with the provisions of section 50B of the Income-tax Act, 1961.

Place

Signed

Date

Chartered Accountant

 

 

 

 

 

 

 

 

 

 

 

 

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