TaxTMI 
TaxTMI 
Is there Capital Gain applicable when a Wholly owned Subsidiary company gets merged with its Holding company.
John Shannel
Capital Gain on Mergers
10 Mar 2011 
1 Reply 
1158 Views Asked by
Capital gain treatment: merger of wholly owned subsidiary into Indian holding company not treated as transfer under Sec 45.
A merger in which a wholly owned subsidiary is absorbed by its Indian holding company is not regarded as a taxable transfer of capital assets, and the assets are not treated as stock-in-trade; consequently no capital gain arises under the capital gains provisions where those conditions are met. (AI Summary)
A merger in which a wholly owned subsidiary is absorbed by its Indian holding company is not regarded as a taxable transfer of capital assets, and the assets are not treated as stock-in-trade; consequently no capital gain arises under the capital gains provisions where those conditions are met. (AI Summary)