Tax treatmen of goodwill on sale of business
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 January 2012
A proprietor closes a business and sells the Goodwill... What will be tax treatment on sale of goodwill.......?
04 January 2012
Transger of goodwill is taxable under the head Capital Gains.
The sale consideration will be the amount received for the goodwill.
The cost of acquisition of such goodwill shall be NIL if the goodwill is self generated.
Otherwise it will be the amount paid for purchasing the goodwill (in case business was earlier purchased from someone else).
Such amount shall be taxable as capital gains.
The sale consideration will be the amount received for the goodwill.
The cost of acquisition of such goodwill shall be NIL if the goodwill is self generated.
Otherwise it will be the amount paid for purchasing the goodwill (in case business was earlier purchased from someone else).
Such amount shall be taxable as capital gains.
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