Amalgamation loss transfer permits set-off subject to business continuity, asset retention, production compliance, and the original carry-forward period.

Eligible amalgamations may transfer the amalgamating company's accumulated losses and unabsorbed depreciation to the amalgamated company, subject to continuity of business, retention of prescribed fixed assets, and fulfilment of business-revival conditions. An acquired industrial undertaking must attain and maintain the prescribed production level and furnish the required accountant-certified certificate with the relevant return. Strategic-disinvestment cases are subject to a cap based on losses and depreciation existing when public-sector status ceased. Non-compliance makes prior set-off or depreciation benefit taxable in the year of default, and transferred losses remain available only for the unexpired original carry-forward period.

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