1.Tax Considerations on M&A Transactions
I. Introduction
The Indian Income Tax Act, 1961
("ITA") contains several provisions that
deal with the taxation of different categories of mergers and
acquisitions. In the Indian context, M&As can be structured in
different ways and the tax implications vary based on the structure
that has been adopted for a particular acquisition. The methods in
which an acquisition can be undertaken are:
1. Merger: This entails a court approved
process whereby one or more companies merge with another company or
two or more companies merge together to form one company;
2. Demerger: This entails a court approved
process whereby the business / undertaking of one company is
demerged into a resulting company;
