Amalgamation – Section 2(6) | Income-tax Act, 2025 vs 1961

§ 2(6) · Income-tax Act, 2025

Amalgamation

ITA 2025 · 2(6) ITA 1961 · 2(1B)
Definition — Section 2(6)

Means the merger of one or more companies with another company, or the merger of two or more companies to form one company, in such a manner that — (a) all property of the amalgamating company immediately before amalgamation becomes the property of the amalgamated company; (b) all liabilities of the amalgamating company immediately before amalgamation become the liabilities of the amalgamated company; and (c) shareholders holding not less than three-fourths in value of the shares in the amalgamating company become shareholders of the amalgamated company by virtue of the amalgamation.

Act Comparison
Income-tax Act, 2025
2(6)
Amalgamation
Income-tax Act, 1961
2(1B)
Amalgamation
Key Points
  • Mirrors Section 2(1B) of the 1961 Act
  • Conditions include continuity of 75% shareholder base
  • Special tax treatment applies — no capital gains on transfer in qualifying amalgamation
💡 Practical Note

A merger that doesn't meet the 75% shareholder continuity condition loses its 'amalgamation' status for tax purposes — making it a taxable transfer.

Published by Simplified Tax India — Clear, section-wise comparison of Income-tax Acts. ← Back to Section 2 Definitions Table
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