Clause 52 of the Income Tax Bill, 2025 Explained: Amortisation of expenses and Tax Implications for Telecommunications and Corporate Restructuring

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..... unications services, amalgamation, demerger, scheme of voluntary retirement, etc. Income Tax Bill, 2025 Clause 52 of the Income Tax Bill, 2025: A Comprehensive Analysis Introduction Clause 52 of the Income Tax Bill, 2025, introduces significant provisions regarding the amortisation of expenditures related to telecommunications services, amalgamation, demerger, and voluntary retirement schemes. .....

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..... treatment of these expenditures, reflecting the evolving business landscape and technological advancements. Detailed Analysis 1. Amortisation of Expenditure for Amalgamation or Demerger - Nature of Expenditure: Expenditure incurred by an Indian company exclusively for amalgamation or demerger. - Initial Tax Year: The tax year in which the amalgamation or demerger occurs. - Deduction Perio .....

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..... nces are transferred. It specifies conditions under which deductions can be claimed or denied, ensuring that tax liabilities are accurately assessed during such transactions. 5. Compliance and Rectification The clause mandates rigorous compliance with its provisions. In cases of non-compliance, deductions may be deemed incorrectly allowed, and the Assessing Officer is empowered to rectify the to .....

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..... 52 - Similarity: Both sections deal with the amortisation of licence fees for telecommunication services. - Difference: Clause 52 includes additional provisions for the transfer of rights and amalgamation or demerger scenarios. Section 35DD vs. Clause 52 - Similarity: Both provisions allow for the amortisation of expenditure related to amalgamation or demerger. - Difference: Clause 52 .....

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