Carryforward of losses: amalgamation rules now allow erstwhile public sector company amalgamations after strategic disinvestment with limits on deemed losses. Amendment expands section 72A to deem accumulated loss and unabsorbed depreciation of an amalgamating public sector company as those of the amalgamated company; permits deeming where an erstwhile public sector company ceases to be public by strategic disinvestment and amalgamates with other companies within the permitted transitional period after a contractual restriction; and limits the deemed losses and unabsorbed depreciation to amounts existing when the company ceased to be a public sector company, with defined terms for control, erstwhile public sector company, and strategic disinvestment.
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Carryforward of losses: amalgamation rules now allow erstwhile public sector company amalgamations after strategic disinvestment with limits on deemed losses.
Amendment expands section 72A to deem accumulated loss and unabsorbed depreciation of an amalgamating public sector company as those of the amalgamated company; permits deeming where an erstwhile public sector company ceases to be public by strategic disinvestment and amalgamates with other companies within the permitted transitional period after a contractual restriction; and limits the deemed losses and unabsorbed depreciation to amounts existing when the company ceased to be a public sector company, with defined terms for control, erstwhile public sector company, and strategic disinvestment.
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