Provisions relating to carry forward & set off of accumulated losses in case of any amalgamation or business reorganisation After 01.04.2025 [Section 72A(6B)] - Income Tax - Ready Reckoner - Income Tax

Provisions relating to carry forward set off of accumulated losses in case of any amalgamation or business reorganisation After 01.04.2025 [ Section 72A(6B) ] [ W.e.f. 01.04.2026 Inserted vide Section 14 of the Finance Act, 2025 ] Where any amalgamation or business reorganisation, as the case may be, is effected on or after the 1st April, 2025, any loss forming part of the accumulated loss of the predecessor entity under section 72A(1), (6) or (6A), being (a) the amalgamating company; or (b) the firm or proprietary concern; or (c) the private company or unlisted public company, as the case may be, which is deemed to be the loss of the successor entity, being (i) the amalgamated company; or (ii) the successor company; or (iii) the successor limited liability partnership, as the case may be, shall be carried forward in the hands of the successor entity for not more than eight assessment years immediately succeeding the assessment year for which such loss was first computed for original predecessor entity. Meaning of Original predecessor entity original predecessor entity means predecessor entity in respect of the first amalgamation under section 72A(1) or first business reorganisation under section 72A(6) or (6A);