/ What is a Slump Sale in Noida?

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What is a Slump Sale in Noida?

Updated on : 18 June 2025

By Hexadecimal Software Team

1. What is a Slump Sale?
2. Why Noida for Slump Sales?
3. Legal Framework
4. Tax Implications
5. Slump Sales in Noida Real Estate
6. Top Sectors for Investment
7. Challenges to Avoid
8. Tips for Success
9. FAQs

1. What is a Slump Sale?
2. Why Noida for Slump Sales?
3. Legal Framework
4. Tax Implications
5. Slump Sales in Noida Real Estate
6. Top Sectors for Investment
7. Challenges to Avoid
8. Tips for Success
9. FAQs

What is a Slump Sale?

A slump sale transfers a business undertaking—assets, liabilities, and operations—as a going concern for a single price, as defined under Section 2(42C) of the Income Tax Act, 1961. In Noida, it’s used for commercial properties in Noida, like IT parks or offices, without itemizing assets.

Why Noida for Slump Sales?

Noida’s location and infrastructure make it ideal for slump sales:

Connectivity: Near Delhi, with metro and Jewar Airport access.
Business Hub: Sector 62 hosts IT firms driving transfers.
Property Prices: ₹4,000-₹20,300/sq ft.
Rental Yields: 2-3% for commercial spaces.

Legal Framework

Slump sales are governed by:

Income Tax Act, 1961: Section 50B for capital gains.
Companies Act, 2013: Regulates agreements.
GST Laws: Exempts going concerns.

Requirement	Description
Due Diligence	Verify assets, liabilities, and compliance with tax laws.
Agreement	Draft clear terms under Companies Act, 2013.
Approvals	Obtain shareholder or board approval for transfer.
Registration	File with RoC for compliance, per MCA guidelines.

Tax Implications

Under Section 50B:

As per: CBIC, GST is exempt for going concerns.
Capital Gains: Sale price minus net worth.
Long-Term (>36 months): 20% tax with indexation.
Short-Term: Slab rates apply.

Tax Type	Details
Capital Gains	Long-term: 20% with indexation; Short-term: slab rates.
GST Exemption	No GST if business is a going concern.
Section 54EC	Exemption if gains reinvested in specified bonds.
Stamp Duty	Varies by state; may require asset valuation.

🏢 Explore Noida’s Commercial Market! Find Noida properties for sale on HexaHome for slump sales! 💼

Slump Sales in Noida Real Estate

Slump sales streamline transfers of commercial assets, like Sector 94 offices (₹20,300/sq ft), ensuring buyer continuity.

Top Sectors for Investment

Sector	Price (₹/sq ft)	Yield (%)	Key Use
Sector 62	9,250	2.5	IT/ITES
Sector 137	9,650	2.0	Mixed-Use
Sector 94	20,300	3.0	Commercial

Challenges to Avoid

Challenge	Description
Valuation Complexity	Determining a fair lump sum price is difficult.
Legal Risks	Non-compliance with tax or GST laws can lead to penalties.
Due Diligence Gaps	Hidden liabilities may disrupt deals.
Regulatory Delays	Slow approvals can stall transactions.

Tips for Success

Tip	Strategy
Consult Experts	Experienced advisors for tax and legal guidance.
Research	Check HexaHome listings for insights.
Ensure Compliance	Follow Income Tax and GST regulations.
Target Growth Areas	Focus on sectors near Jewar Airport for high returns.

FAQs

Que: What is a slump sale in Noida?
Ans: A lump sum business transfer, common in Noida’s commercial sector.

Que: Are slump sales taxable?
Ans: Yes, as capital gains under Section 50B.

Que: Where to find properties for slump sales?
Ans: Explore Noida properties on HexaHome.

Que: Do I need GST registration for a slump sale?
Ans: No, if the business is transferred as a going concern, it's exempt from GST under CBIC guidelines.

Que: Can residential properties be part of a slump sale?
Ans: Typically, slump sales involve business undertakings. Residential properties may not qualify unless they are part of a business asset.

Que: What documents are needed for a slump sale agreement?
Ans: Key documents include a slump sale agreement, board/shareholder approval, asset-liability statement, and compliance certificates.