Quick Summary
1. Section 79 of the Act provides for carry forward and set-off of losses in case of certain companies. Sub-section (1) of the said section, inter-alia, provides that where a change in shareholding has taken place during the previous year in the case of a company, not being a company in which the public are substantially interested, no loss incurred in any year prior to the previous year shall be carried forward and set off against the income of the previous year, unless on the last day of the p
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FAQ :
The amendment aims to facilitate the strategic disinvestment of public sector companies by adapting the rules for carrying forward and setting off losses.
The ultimate holding company must continue to hold, directly or through subsidiaries, at least 51% of the voting power of the erstwhile public sector company immediately after the strategic disinvestment is completed.
If the condition is not complied with in any previous year after the strategic disinvestment, the original provisions of sub-section (1) of Section 79 will apply for that year and subsequent years.
This amendment takes effect from 1st April 2022 and will apply to the assessment year 2022-23 and subsequent assessment years.
No, the amendment specifically applies to erstwhile public sector companies undergoing strategic disinvestment and not to companies in which the public are substantially interested, with certain exceptions outlined in sub-section (2) of Section 79.
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