Table of Contents
- 1 What are the conditions for amalgamation as a merger?
- 2 What are the five conditions that have to be satisfied for an amalgamation to qualify as amalgamation by way of merger?
- 3 What are the tax benefits available to amalgamating company?
- 4 What are the conditions for an amalgamation under Section 87?
- 5 How are amalgamations treated in the Income Tax Act?
What are the conditions for amalgamation as a merger?
Amalgamation in the nature of merger is an amalgamation that satisfies all the following conditions: All the assets and liabilities of the transferor company become, after amalgamation, the assets and liabilities of the transferee company.
What is amalgamation in Income Tax Act?
Amalgamation (Section 2(1B) of Income-tax Act, 1961): means merger of either one or more companies with another company or merger of two or more companies to form one company in such a manner that : All the property/liability of the amalgamating company/companies becomes the property/liability of amalgamated company.
What does amalgamate mean in business?
Key Takeaways. Amalgamation is the combination of two or more companies into a new entity by combining the assets and liabilities of both entities into one. The transferor company is absorbed into the stronger, transferee company, leading to an entity with a stronger customer base and more assets.
What are the five conditions that have to be satisfied for an amalgamation to qualify as amalgamation by way of merger?
As per standard, an amalgamation should be considered to be an “amalgamation in the nature of merger” when all the following conditions are satisfied: All assets and liabilities of the transferor company become, after amalgamation, the assets, and liabilities of the transferee company.
What is amalgamation explain its types and conditions?
Amalgamation is defined as the combination of one or more companies into a new entity. It includes: Two or more companies join to form a new company. Absorption or blending of one by the other.
What is the difference between amalgamated and amalgamating company?
‘Transferor company’ means the company which is merging also known as amalgamating company in case of amalgamation and ‘transferee company’ is the company which is formed after merger or amalgamation also known as amalgamated company in case of amalgamation.
What are the tax benefits available to amalgamating company?
Under section 47(vi) of the Income-tax Act, capital gain arising from the transfer of assets by the amalgamating companies to the Indian Amalgamated Company is exempt from tax as such transfer will not be regarded as a transfer for the purpose of Capital Gain.
What is amalgamation in social science?
Amalgamation refers to a blending of cultures, rather than one group eliminating another (acculturation) or one group mixing itself into another (assimilation).
What is difference between amalgamation and consolidation?
As nouns the difference between consolidation and amalgamation. is that consolidation is the act or process of consolidating, making firm, or uniting; the state of being consolidated; solidification; combination while amalgamation is the process of amalgamating; a mixture, merger or consolidation.
What are the conditions for an amalgamation under Section 87?
First, “qualifying amalgamations” are those that meet the conditions set out in section 87 of the Income Tax Act. Once the section 87 conditions are met, the Income Tax Act provides various tax attributes and comprehensive tax deferral treatments for shareholders and the amalgamated corporation.
What are the conditions for an amalgamation in Canada?
A qualifying amalgamation under subsection 87 (1) of the Income Tax Act must meet the following conditions: all of the property (except shares or receivables of another predecessor corporation) of the predecessor corporations, immediately before the merger, becomes property of the new corporation as a result of the amalgamation;
Which is the best definition of an amalgamation?
noun In business, an amalgamation is defined as the merger of two or more companies. In science, an amalgamation is defined as a mixture of metal and mercury.
How are amalgamations treated in the Income Tax Act?
For income tax purposes, subsection 87 (1.1) ensures that a vertical short-form amalgamation and a horizontal short-form amalgamation are treated as qualifying amalgamations under section 87 of the Income Tax Act.