Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Top Headlines »
Open DEMAT Account in 24 hrs
 March 31 deadline is getting near. How to save income tax with tax loss harvesting?
 45-day MSME payment rule: Impact and details of Section 43B(h) explained
 Small savings schemes that offer tax benefits of up to Rs 1.5 lakh under section 80C
 RE-OPENING OF CORRECTION WINDOW FOR MAY 2024 CA EXAMINATIONS
 Powerful Upgrades, Tally 12+1 months renewal Plan and Connected Services for your growing Business - March 2024
 How innovative solutions can help fix the Sec 43B conundrum for MSMEs
 Income Tax dept asks many individuals to explain high value transactions of FY20-21 as Updated ITR deadline nears
 Release Notes for TallyPrime and TallyPrime Edit Log Release 4.1 | What s New!
 Deadline to file updated ITR FY20-21 ends on March 31: Details on additional tax
 4 tax-planning mistakes to avoid this season
 ITR 2024: Here are 8 ways by which senior citizens can save on taxes this year

Tax act amended for Air India, Indian merger
February, 19th 2007

The finance ministry has approved a key amendment in the Income Tax Act that will allow the state-run carriers Air India and Indian Airlines to carry forward unabsorbed depreciation once they are merged.

"Based on a cabinet note received from the civil aviation ministry, the finance ministry is amending Section 72A of the Income Tax Act. But this is applicable only for the planned merger of Air India and Indian Airlines," an official said.

"However, it has not been found feasible to extend the benefits of this section to amalgamations of private airlines," the official added. "The proposal is only meant to act as a catalyst for the merger of the two state-run carriers."

As per current provisions of the Income Tax Act, merged companies in the airline business are not allowed to carry forward their tax and unabsorbed depreciations for setting up a merged entity.

The civil aviation ministry argued that this crucial provision deterred mergers and acquisitions in the airline business and had also wanted this amendment to extend to other carriers for at least five years.

"We made the proposal since we feel it will sustain consolidations and help the aviation industry's growth in the coming years. We had also said that similar benefit was extended to the telecom sector earlier," a senior official, who did not wish to be identified, said.

The finance ministry, however, feels it is not feasible and has also turned down another proposal on the crucial issue of tax on lease rentals.

There will be no further extension of this benefit under Section 10(15A) of the Income Tax Act, even though most airline operators who lease their aircraft felt its withdrawal would impact their costs and financial viability.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting