Query relating to tax effect on gooodwill

Dear Members and colleuges,

I m having  query relating to tax effect on goodwill..

Starting with an example- There is a partnership firm having its net worth Rs. 10 Lacs and now firm is selling its networth to company named XYZ ltd. at Rs. 12 Lacs.

Now the difference of Rs. 2 Lacs would be goodwill of partnership firm. 

My question is will tax would be charged to partnership firm on receiving Rs. 2 Lacs and whether any As will apply for the same...??

Thanks in advance.

Regards

Palak 

 

Replies (1)

Dear Palak,

 

for taxation, you can refer to the provisions of slump sale under the income tax act.

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