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Capital gains

What is the difference between amalgamation and merger


Siva Kumar

Siva Kumar

CA Inter

715

26-Jan-21 16:32

20

Answers (3)

I think in CAPITAL GAINS we jst discuss about AMALGAMATION and DEMERGER AMALGAMATION A ltd +B ltd =AB ltd DEMERGER AB ltd = A ltd + B ltd Actually the difference between AMALGAMATION and DEMERGER is discussed in AS 14


Nithish Kumar

Nithish Kumar

CA Inter

330

26-Jan-21 21:56

Amalgamation - one or more companies merge with another company or two or more companies merge to form one company. All assets and liabilities of amalgamating company become that of amalgamated company. 3/4th of shareholders become holders in new company. Amalgamation can be in the nature of purchase ( bigger and financially stronger entity takes over a smaller one.) or merger (two or more companies who share similar operations or are engaged in the same line of business combine) . Under income tax we deal with Amalgamation in the nature of merger.


sudha reddy

sudha reddy

Moderator

28-Jan-21 13:58

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