TaxTMI 
TaxTMI 
U/s 115JG(1) of IT ACt 1961 - Central Government notifies conditions a foreign company engaged in the business of banking in India
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....ch into its subsidiary company (hereinafter referred to as the Indian subsidiary company) as referred to in sub-section (1) of section 115JG of the Act, the provisions of clause (i) and clause (ii) of sub-section (1) of section 115JG of the Act shall be applicable to such conversion, if following conditions are fulfilled, namely:- (a) the Indian branch amalgamates with the Indian subsidiary company in accordance with the scheme of amalgamation approved by the shareholders of the foreign company and the Indian subsidiary company and sanctioned by the Reserve Bank of India under paragraph 20(h) of the Framework for setting up of wholly owned subsidiaries by foreign banks in India issued by the Reserve Bank of India vide press release number....
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....deemed income relating to certain companies and the computation of income in the case of foreign company referred to in sub-section (1) of section 115JG of the Act and the Indian subsidiary company shall apply with the following exceptions, modifications and adaptation,- (a) for the purposes of allowance of depreciation under section 32 of the Act, the aggregate deduction, in respect of depreciation of buildings, machinery, plant or furniture, being tangible assets or know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature, being intangible assets allowable to the Indian branch and the Indian subsidiary company shall not exceed in any previous year the deduction calculat....
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....ary company shall be the written down value of the block of assets as in the case of the Indian branch on the date of its conversion into the Indian subsidiary company; (d) the actual cost of any capital asset on which deduction has been allowed or is allowable under section 35AD of the Act , shall be treated as 'nil' for the purposes of clause (1) of section 43 of the Act in the case of the Indian subsidiary company if the capital asset became the property of the Indian subsidiary company as a result of conversion of the Indian branch; (e) where the capital asset other than those referred to in sub-clause(c) and sub-clause (d) became the property of the Indian subsidiary company as a result of conversion of the Indian branch, t....