Capital gains treatment for amalgamation transfers excludes certain asset transfers where the amalgamated company is Indian.

Transfer of a capital asset by the amalgamating company to the amalgamated company in a scheme of amalgamation is treated as not regarded as a transfer where the amalgamated company is an Indian company. For the transferee, the cost of acquisition is linked to the cost in the hands of the shareholder in the amalgamating company, and the period of holding includes the period for which the previous owner held the asset.

---

---

---