Income Tax Act, 2025
Section 4: Ins. by Act 27 of 1999, s. 19 (w.e.f. 12000).
4. Ins. by Act 27 of 1999, s. 19 (w.e.f. 12000).
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(ii) the provisions of this section shall, as far as may be, apply to the resulting company, as they
would have applied to the demerged company, if the demerger had not taken place.]
(6) Where a deduction under this section is claimed and allowed for any assessment year in respect of
any expenditure specified in sub-section (2), the expenditure in respect of which deduction is so allowed
shall not qualify for deduction under any other provision of this Act for the same or any other assessment
year.
1[35DD. Amortisation of expenditure in case of amalgamation or demerger.—(1) Where an
assessee, being an Indian company, incurs any expenditure, on or after the 1st day of April, 1999, wholly
and exclusively for the purposes of amalgamation or demerger of an undertaking, the assessee shall be
allowed a deduction of an amount equal to one-fifth of such expenditure for each of the five successive
previous years beginning with the previous year in which the amalgamation or demerger takes place.
(2) No deduction shall be allowed in respect of the expenditure mentioned in sub-section (1) under
any other provision of this Act.]
2[35DDA. Amortisation of expenditure incurred under voluntary retirement scheme.—(1)
Where an assessee incurs any expenditure in any previous year by way of payment of any sum to an
employee 3[in connection with his voluntary retirement], in accordance with any scheme or schemes of
voluntary retirement, one-fifth of the amount so paid shall be deducted in computing the profits and gains
of the business for that previous year, and the balance shall be deducted in equal instalments for each of
the four immediately succeeding previous years.]
4[(2) Where the assessee, being an Indian company, is entitled to the deduction under sub-section (1)
and the undertaking of such Indian company entitled to the deduction under sub-section (1) is transferred,
before the expiry of the period specified in that sub-section, to another Indian company in a scheme of
amalgamation, the provisions of this section shall, as far as may be, apply to the amalgamated company
as they would have applied to the amalgamating company if the amalgamation had not taken place.
(3) Where the undertaking of an Indian company entitled to the deduction under sub-section (1) is
transferred, before the expiry of the period specified in that sub-section, to another company in a scheme
of demerger, the provisions of this section shall, as far as may be, apply to the resulting company, as they
would have applied to the demerged company, if the demerger had not taken place.
(4) Where there has been reorganisation of business, whereby a firm is succeeded by a company
fulfilling the conditions laid down in clause (xiii) of section 47 or a proprietary concern is succeeded by a
company fulfilling the conditions laid down in clause (xiv) of section 47, the provisions of this section
shall, as far as may be, apply to the successor company, as they would have applied to the firm or the
proprietary concern, if reorganisation of business had not taken place.
5[(4A) Where there has been reorganisation ofbusiness, whereby a private company or unlisted public
company is succeeded by a limited liability partnership fulfilling the conditions laid down in the proviso
to clause (xiiib) of section 47, the provisions of this section shall, as far as may be, apply to the successor
limited liability partnership, as they would have applied to the said company, if reorganisation of business
had not taken place.
(5) No deduction shall be allowed in respect of the expenditure mentioned in sub-section (1) in the
case of the amalgamating company referred to in sub-section (2), in the case of demerged company
referred to in 6[sub-section (3), in the case of a firm or proprietary concern referred to in sub-section (4)
the provisions of this section shall, as far as may be, apply to the resulting company, as they
would have applied to the demerged company, if the demerger had not taken place.]
Where a deduction under this section is claimed and allowed for any assessment year in respect of
any expenditure specified in sub-section
Where an
assessee, being an Indian company, incurs any expenditure, on or after the 1st day of April, 1999, wholly
and exclusively for the purposes of amalgamation or demerger of an undertaking, the assessee shall be
allowed a deduction of an amount equal to one-fifth of such expenditure for each of the five successive
previous years beginning with the previous year in which the amalgamation or demerger takes place.
No deduction shall be allowed in respect of the expenditure mentioned in sub-section
under
any other provision of this Act.]
2[35DDA. Amortisation of expenditure incurred under voluntary retirement scheme.—
Where an assessee incurs any expenditure in any previous year by way of payment of any sum to an
employee 3[in connection with his voluntary retirement], in accordance with any scheme or schemes of
voluntary retirement, one-fifth of the amount so paid shall be deducted in computing the profits and gains
of the business for that previous year, and the balance shall be deducted in equal instalments for each of
the four immediately succeeding previous years.]
4[
Where the assessee, being an Indian company, is entitled to the deduction under sub-section
and the undertaking of such Indian company entitled to the deduction under sub-section
is transferred,
before the expiry of the period specified in that sub-section, to another Indian company in a scheme of
amalgamation, the provisions of this section shall, as far as may be, apply to the amalgamated company
as they would have applied to the amalgamating company if the amalgamation had not taken place.
Where the undertaking of an Indian company entitled to the deduction under sub-section
is
transferred, before the expiry of the period specified in that sub-section, to another company in a scheme
of demerger, the provisions of this section shall, as far as may be, apply to the resulting company, as they
would have applied to the demerged company, if the demerger had not taken place.
Where there has been reorganisation of business, whereby a firm is succeeded by a company
fulfilling the conditions laid down in clause
of section 47 or a proprietary concern is succeeded by a
company fulfilling the conditions laid down in clause
of section 47, the provisions of this section
shall, as far as may be, apply to the successor company, as they would have applied to the firm or the
proprietary concern, if reorganisation of business had not taken place.
5[
Where there has been reorganisation ofbusiness, whereby a private company or unlisted public
company is succeeded by a limited liability partnership fulfilling the conditions laid down in the proviso
to clause
of section 47, the provisions of this section shall, as far as may be, apply to the successor
limited liability partnership, as they would have applied to the said company, if reorganisation of business
had not taken place.
No deduction shall be allowed in respect of the expenditure mentioned in sub-section
in the
case of the amalgamating company referred to in sub-section