hello,
in case of computing capital gains of purchased goodwill,
wt will be the cost of acquisition?
is it cost of purchase or cost after indexation??
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CAPITAL GAINS
Replies (3)
The Supreme Court in the case of CIT v. Smifs Securities Ltd. [2012] 210 Taxman 428/24 tax mann.com 222 has held that goodwill acquired on amalgamation (being difference between cost of assets and consideration paid) was a capital right which would fall under the expression 'any other business or commercial right of a similar nature' and, hence, eligible for depreciation while computing business income.
Refer: https://tax mann.com/budget/t1/allowance-of-depreciation-on-goodwill-need-clarification.aspx
haa sir ji, now my question is ,in case of subsequent sale of such goodwill,
we deduct the cost of purchase from net consideration right?
do we get indexation benefit for goodwill is my question??
we deduct the cost of purchase from net consideration right?
do we get indexation benefit for goodwill is my question??
For depreciable assets, question of indexation do not arise.
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