Slump sale

Assessee is declaring income under section 44AD and he sold out all his business. Now wheter that income is taxable under capital gain or business income?
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Quick Summary
This discussion clarifies the tax treatment of a slump sale for an assessee opting for Section 44AD. It confirms that income from a slump sale is taxable under capital gains, not business income. The calculation involves determining the sale price minus the net worth of the business, with capital gains tax applied based on the holding period. The method for calculating net worth, even without detailed books, is also explained.

It will be chargeable under the head Capital Gains.
Since the Assessee has not maintained books how the capital gain arrived sir.?
Slump sale specifies the gain or loss arising from the sale of undertaking without assigning values to the assets.
To tax under capital gains head for slump sale, there is only requirement of Net worth i.e Aggregate value of total assets minus value of liabilities. So, the amount at which business is sold less Net worth will arrive at Capital Gains. And, thereafter capital gains will be charged on the basis of period of holding of business. Why you are getting confuse with the maintenance of books of accounts as we can find the value of given assets and liabilities from market value.
Thank u sir...

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