28/01/2019

Amortisation of  expenditure in case of amalgamation /demerger (sec 35DD] ( Author - Admin )


Amortisation of  expenditure in case of amalgamation /demerger (sec 35DD] :-

 If an  Indian company incurs any expenditure for the purpose of amalgamation or demerger, it is  allowed as deduction in five successive years in five equal instalments. The first instalment is deductible in the  previous year in which amalgamatlon or demerger takes place. 

A similar provision is applicable in the case of amalgamation or demerger of co-operative banks.

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