Clause 22 - Substitution of section 79.

Carry forward of losses restricted by change in shareholding; startups and insolvency resolution cases receive specified exceptions.

Substitution of section 79 restricts carry forward and set off of losses where a change in shareholding has occurred during the previous year: losses incurred in years prior are disallowed unless the persons who beneficially held shares carrying not less than fifty-one per cent. of voting power on the loss year end continue to hold that voting power on the last day of the previous year. An eligible startup is exempt if original voting shareholders continue to hold shares and the loss arose within seven years of incorporation. Several specific exceptions and definitions are provided.