Provisions relating to carry forward & set off of accumulated losses and unabsorbed deprecaition in case of Amalgamation, Demerger etc. - Section 72A - Income Tax - Ready Reckoner - Income Tax

Provisions relating to carry forward set off of accumulated losses and unabsorbed depreciation in case of Amalgamation, Demerger etc. - Section 72A 'Unabsorbed Depreciation and Business Loss' can be carried forward by a person who has incurred such loss or depreciation but certain exceptions are provided in sections 72A and 72AB which provides for carry forward and set off of accumulated business loss and unabsorbed depreciation allowance in the hands of amalgamated company or resulting company/cooperative bank. On inheritance on death of an individual, the legal heir shall carry forward the losses of deceased for the balance number of years. Section 72A : The unabsorbed losses and the unabsorbed depreciation of the amalgamating company shall be deemed to be the unabsorbed loss and depreciation of the amalgamated company subject to the fulfillment of certain conditions referred to in Section 72A. Section 72A : Firm succeeded to by a company fulfilling the conditions laid down in section 47(xiii) . Section 72A : Conversion of Company into a LLP fulfilling the conditions laid down in section 47(xiiib) Section 72A : Proprietary concern succeeded to by a company fulfilling the conditions laid down in section 47(xiv) Section 72A : Loss of the demerged company can be carried forward by the resulting company subject to the fulfillment of certain conditions. Section 72AA : Loss of the banking company amalgamated with [other banking institution under a scheme sanctioned by CG or any other banking institution or a company subsequent to a strategic disinvestment, wherein the amalgamation is carried out within a period of five years from the end of the previous year during which such strategic disinvestment is carried out, Added by FA, 2023 ] or with new banks, corresponding new bank or one or more government companies under a scheme sanctioned by CG. Section 72AB : Loss of amalgamating co-operative bank can be carried forward by the amalgamated co-operative bank subject to fulfilment of certain conditions. Section 72AB : Loss of demerged co-operative bank can be carried forward to the resulting co-operative bank subject to fulfillment of certain conditions. an erstwhile public sector company with one or more company or companies, if the share purchase agreement entered into under 'strategic disinvestment' restricted immediate amalgamation of the said public sector company and the amalgamation is carried out within five year from the end of the previous year in which the restriction on amalgamation in the share purchase agreement ends Note: In case any condition provided for amalgamation is not fulfilled then, set off or allowance of depreciation made in any PY in the hands of Amalgamated Co. shall be deemed to be the income of the Amalgamated Co. chargeable to tax in which such conditions are not complied with - Deemed Income u/s 72A. [Clause iii of Explanation added by FA, 2023 (iii) strategic disinvestment means sale of shareholding by the Central Government or any State Government or a public sector company, in a public sector company or in a company, which results in (a) reduction of its shareholding to below fifty-one per cent.; and (b) transfer of control to the buyer: The condition laid down in sub-clause (a) shall apply only in a case where shareholding of the Central Government or the State Government or the public sector company was above fifty-one per cent. before such sale of shareholding: That requirement of transfer of control referred to in sub-clause (b) may be carried out by the Central Government or the State Government or the public sector company or any two of them or all of them .]