Purchased GOOD WILL

This is Capital Gain.

With Zero Cost of Acquisition.

& Hence Fully Taxable as Capital Gain.

Exception: Under IT Act, Professional Goodwill is Exempted.

when you will sale that purchase goodwill capital gain shall be computed as per provision of section 48 and cost of purchase  goodwill shall be taken as price paid for it under AS 26 that is valued goodwill.(AS per section 55)

however value for self generated goodwill is taken as NIL under section 55.

capital gain will arise. 

the whole amount received will be capital gain as goodwill being a self genrated assets will have zero cost

Dear Friend,

Where goodwill is purchased, it is not self generated. Its cost will be he actual cost of acquisition.

You have to compute the capital gain accordingly.

dear frnd,

if goodwill is self generated then its value is nil but in this case it is not selfgenerated so COA will be the cost at which it is purchased + appropirate indexation at the time of sale( if applicable ie. in case of LTCG)

I AGREE WITH AYUSH

Originally posted by : ravi tej
	I AGREE WITH AYUSH

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