Carry forward of losses on transfer of public limited company ?

Tax planning 218 views 1 replies

Transfer of ownership i.e. transfer of share of  Closely held company attracts sec. 79 for carry forward & Set off of Losses & unabsorbed depreciation. It also lays down condition of Minimum 51% share holding to remain intact & lock in period for it.

BUT what in respect of Public company?

Can Losses be carried forward & set off on transfer of ownership of public company? Mostly when more than 51% of share holding is transfered to outsiders?

What are the ways by which losses can be c/f & ownership stands transfered ?

Please answer if such losses can be carried forward? Please specify relevant provisions if Any??

 

 

Replies (1)

Thanks. but is there any provision under income tax restricting c/f of losses when there is change in ownership of public ltd co. ?


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