Goodwill treatment

Save Share

This query is : Resolved

MAKARAND DAMLE (Querist)
Follow

03 April 2026 On transfer of proprietary business to private limited company goodwill will be paid by private limited company to proprietor
My questions is
whether goodwill is taxable in the hands of private limited company and
whether private limited company claim depreciation on goodwill paid whether it is compulsory

CA.Pujah

CA.Pujah (Expert)
Follow

03 April 2026 Goodwill is not part of block of asset and depreciation is also not allowed thereon. Goodwill is not taxable as such. however, at the time of sale the same may be taken as part of cost of acquisition.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now