Tax on sum received on sale of business

If held for more than one year, LTCG @ 20% will be applicable with indexation benefit. Section 54EC benefit can be taken by investing capital gain in NHAI or RECL Bonds (3 yr lock in) max 50 lakhs within 6 months of transfer of shares in private limited company.

Since it is service business, discounted earnings model can be used, estimate growth rates, risk, determine multiple based on risk. Risk factors are key personnel, disproportionate sales. Strategic buyers deriving synergy from buying your company can realize higher value. Find out portion of earnings which are recurring in nature, staffing or placement business, customer base is diversified, key personnel who generate higher sales.

thx Jagrut