Indian Income Tax Act, 1961

Indian Income Tax Act, 1961

Mergers have not been defined under the ITA, but have been covered under the term “amalgamation” in section 2(1B) of the Act. To promote restructuring, mergers and de mergers have been given a special treatment under this Act.

Certain provisions that are applicable to mergers under section 2(1B) are as follows

• All properties and liabilities of the acquired company become the properties and liabilities of the acquirer company.
• Shareholders holding 75% or more of shares in the acquired company become shareholders in the acquirer company.

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