Tax exemption for transfers in sanctioned banking amalgamations preserves tax neutrality on capital asset transfers.

A new provision excludes from capital gains tax any transfer of a capital asset by a banking company to a banking institution made under a scheme of amalgamation that is sanctioned and brought into force by the Central Government under the Banking Regulation Act; the amendment clarifies that the terms banking company and banking institution have the meanings assigned to them in the Banking Regulation Act.

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