Corporate Mergers and Tax Consequences: A statutory and judicial analysis of Tax continuity in India

Introduction : Mergers in the corporate field serve as very important instruments for market expansion and strategic operational consolidation. But, the effectiveness of a merger relies heavily on the financial neutrality of the same along with tax continuity being an important aspect. The concerned legislation in India dealing with the same is the Income Tax Act, 1961, which provides mechanisms for the tax-neutral restructuring in cases of corporate mergers. Looking at the recent discussion...