What is the difference between amalgamation and merger
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
ð??? it's merger not demerger
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.