Under section 77 of the Income-tax Act, 2025, profits from the slump sale of an undertaking are…

Section 77(2) of the Income-tax Act, 2025 treats slump sale gains as short-term capital gains where the undertaking or division was held for thirty-six months or less. Gains on an undertaking held for more than "36 months" therefore remain long-term capital gains under section 77(1), even though the general holding period for most other assets in section 2(101) is twenty-four months. This corresponds to section 50B of the repealed Income-tax Act, 1961.