Resulting Company – Section 2(97) | Income-tax Act, 2025 vs 1961

§ 2(97) · Income-tax Act, 2025

Resulting company

ITA 2025 · 2(97) ITA 1961 · 2(41A)
Definition — Section 2(97)

Means one or more companies (including a wholly owned subsidiary thereof) to which the undertaking of the demerged company is transferred in a demerger, and which issues shares to the shareholders of the demerged company in consideration of such transfer. Includes any authority, body, local authority, public sector company, or a company established or formed as a result of the demerger.

Act Comparison
Income-tax Act, 2025
2(97)
Resulting company
Income-tax Act, 1961
2(41A)
Resulting company
Key Points
  • Maps to Section 2(41A) of the 1961 Act
  • Receives business undertaking in a demerger
  • Issues shares to shareholders of the demerged company proportionately
💡 Practical Note

The resulting company is the 'new' entity after a demerger — it steps into the shoes of the transferred business for depreciation and other carryovers.

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