Savings Capital Gains Tax from sale of business

Firstly clarify your nature of transaction if you are selling the entire business or its unit or some machinery or any right.

1 if you are selling entire business it will be covered as business income and not capital gain income.

2 if you are selling a unit or some machinery or any right and if it's long term capital gain then you will face capital gain tax.

And now you have only one option to save tax i.e. to invest in startup bonds specified by government u/s 54EE.

Earlier you had option to save capital gain by investing in bonds of NHAI, RERC etc u/s 54EC but now it has been restricted to sale of land or building only u/s 54EC by budget 2018.

So you can only save tax by investing in startup bonds.

Or you can even save tax by investing the entire sale consideration in residential house if you currently own only 1 house.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

I have provided you with 2 options which are only available for saving capital gain.

I don't know what clarification you are asking for.

Dear Sumon,

Request you to elaborate on the question and let me know the transaction that you are undertaking. Is it a total business sale or partial/ specific sale. Once you provide the clarity I will be in a better position to assist.

Regards,

Nikhil.

However, you can save taxes by investing in notified bonds u/s 54EE.

Hi,

- Sale of business happens in two ways, either you are selling individual assets or selling equity. In both the cases, gain will be capital gain. You can invest in bonds.

- Need more information to discuss.

Thanks

Hi Sumon

Please elaborate your case so that we may advise a suitable course of action and exemptions available thereof.

Hi Suman,

Hope you are doing well !

Please explain further so that we can help you in best possible way.

However, you can invest in bonds.

Thanks & Regards,

Payal Chhajed

Hello Sir

Please provide complete detail so that we can provide you proper advice

Hi Simon,

Sale of a unit of business can be considered to be slump sale.

You can save taxes by investing in notified startup bonds u/s 54EE.