TaxTMI 
TaxTMI 
Special provision for computing deductions in the case of business reorganisation of Co-operative banks - (New) Section 64 / (Old) Section 44DB
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....¢ Amortisation of certain preliminary expenses under Section 44 or • Expenditure incurred by an Indian company, wholly and exclusively for the purposes of amalgamation or demerger of an undertaking under Section 52(1) (Table: Sl. No. 1) or • Amount paid to an employee in connection with his voluntary retirement as per any scheme of voluntary retirement under Section 52(1) (Table: Sl. No. 2). Computation of Deduction The amount of deduction allowable to the predecessor co-operative bank or to the successor co-operative bank or to the converted banking company under section 33 or 44 or 52(1) (Table: Sl. No. 1 or 2) shall be determined as p....
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....rative bank with an amalgamated co-operative bank, if- • (i) all the assets and liabilities of the amalgamating co-operative bank or banks immediately before the merger (other than the assets transferred, by sale or distribution on winding up, to the amalgamated co-operative bank) become the assets and liabilities of the amalgamated co-operative bank; • (ii) the members holding 75% or more voting rights in the amalgamating co-operative bank become members of the amalgamated co-operative bank; and • (iii) the shareholders holding 75% or more in value of the shares in the amalgamating co-operative bank (other than the shares held by the amalgamated co-operative bank or its nominee or its subsidiary, imme....
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....bilities of the resulting co-operative bank; • (ii) the assets and the liabilities are transferred to the resulting co-operative bank at values (other than change in the value of assets consequent to their revaluation) appearing in its books of account immediately before the transfer; • (iii) the resulting co-operative bank issues, in consideration of the transfer, its membership to the members of the demerged co-operative bank on a proportionate basis; • (iv) the shareholders holding 75% or more in value of the shares in the demerged co-operative bank (other than shares already held by the resulting bank or its nominee or its subsidiary immediately before the transfer), become shareholders of the resu....
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....tum of claiming deduction under section 32 (Depreciation), 35D (Amortisation of certain preliminary expenses), 35DD (Amortisation of expenses in case of amalgamation or demerger) and 35DDA (Amortisation of expenditure incurred under voluntary retirement scheme) in the hands of amalgamating/ demerged co-operative bank and amalgamated/ resulted co-operative bank. In the year in which Amalgamation or Demerger takes place In the year in which change of ownership takes place, deduction under section 32, 35D, 35DD and 35DDA shall be calculated as under- (i) The amount of deduction allowable to the predecessor co-operative bank under section 32, section 35D, section 35DD or section 35DDA shall be determined in accorda....