Business reorganisation deductions for co-operative banks are apportioned by time and continue with successor entities after restructuring.

Special provisions govern the computation and continuation of deductions where a co-operative bank undergoes business reorganisation by amalgamation, demerger, or conversion. Under the new section 64, deductions for depreciation, amortisation of preliminary expenses, amalgamation or demerger expenditure, and voluntary retirement payments are apportioned between the predecessor co-operative bank and the successor co-operative bank or converted banking company according to the period before and after reorganisation. Where the predecessor was entitled to the deduction, the successor continues the remaining benefit in later years as if the reorganisation had not occurred.

---

---

---