The Hindu Business Line : `Involuntary' bank mergers to get income-tax breaks

BANK mergers prompted by the Government action - `involuntary' mergers - would be given tax breaks under the Income-Tax Act with the Finance Minister, Mr P. Chidambaram, proposing insertion of a new clause to provide for set off of losses of a banking company against profit of a banking institution under a scheme of amalgamation.

"With a view to provide carry forward and set off of accumulated loss and unabsorbed depreciation allowance of a baking company against the profits of a banking institution under a scheme of amalgamation sanctioned by the Central Government, it is proposed to insert a new Section 72AA in the Income Tax Act, 1961," the Budget has said.

The Section would propose that the accumulated loss and unabsorbed depreciation of the amalgamating banking company will be deemed to be the loss or the allowance for depreciation of the banking company for the previous year in which the scheme of amalgamation is brought into force and that all the provisions of the I-T Act relating to set off and carry forward of loss and depreciation shall apply to the merger.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
`People should be pushed into a cheque economy'

Drugs to cost more; Ipca hikes prices

`Involuntary' bank mergers to get income-tax breaks

Fringe benefits from Down Under

Chidambaram plans to rewrite I-T Act, raise FDI in insurance

Shetty is new IDBI chairman; Khandelwal to head BoB

TRAI seeks powers to penalise erring operators

TWI to produce Indo-Pak series; DD to telecast