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CBDT has released detailed Frequently Asked Questions (FAQs) on Form 29, a key compliance requirement for amalgamated companies seeking tax benefits under the Income Tax Act, 2025. Form 29, prescribed under Rule 60 of the Income Tax Rules, 2026, plays a crucial role for companies that have acquired
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FAQ :
Form 29 is a certificate required to confirm that an amalgamated company has achieved and maintained the prescribed production level in industrial undertakings acquired through amalgamation, which is necessary for claiming tax relief on losses and depreciation.
Every amalgamated company that has acquired one or more industrial undertakings through amalgamation and intends to claim tax benefits related to accumulated losses or unabsorbed depreciation of the amalgamating company must file Form 29.
Amalgamated companies must achieve at least 50% of the installed production capacity of the acquired undertaking. This must be achieved within four years and maintained up to five years from the date of amalgamation.
Form 29 must be filed along with the return of income for the tax year in which the prescribed production level is first achieved, and for each subsequent year up to five years from the amalgamation date.
Yes, the redesigned Form 29 allows for the reporting of details for multiple amalgamating companies within a single form.
If the prescribed production level is not maintained, the tax benefit may be withdrawn, and earlier allowances might be re-computed. However, the Central Government may provide relief in genuine cases.
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