{"act":{"id":"finance-act-2025","short_title":"The Finance Act, 2025","long_title":"An Act to give effect to the financial proposals of the Central Government for the financial year 2025-2026.","act_number":"7","act_year":2025,"enact_date":"2025-08-16","enforcement_date":null,"ministry":"Ministry of Finance","department":"Department of Revenue","jurisdiction":"CENTRAL","unit":"section","section_count":153,"in_force":true,"spent":false,"spent_note":null,"duplicate_of":null,"text_source":"published","scan_url":null,"url":"https://indiacode.ecourtsindia.com/finance-act-2025/"},"unit":"section","section":{"number":"15","heading":"Amendment of section 72AA","text":"Amendment of section 72AA. 15.  In section 72AA of the Income-tax Act, with effect from the 1st April, 2026,— (i) | the following proviso shall be inserted, namely:— \"Provided that where any scheme of such amalgamation is brought into force on or after the 1st April, 2025, any loss forming part of the accumulated loss of the predecessor entity, being— (a) | the banking company or companies; or (b) | the amalgamating corresponding new bank or banks; or (c) | the amalgamating Government company or companies, as the case may be, which is deemed to be the loss of the successor entity, being— (i) | the banking institution or company; or (ii) | the amalgamated corresponding new bank or banks; or (iii) | the amalgamated Government company or companies, as the case may be, shall be carried forward in the hands of the successor entity for not more than eight assessment years immediately succeeding the assessment year for which such loss was first computed for original predecessor entity.\"; (ii) | in the Explanation, after clause (vii), the following clause shall be inserted, namely:— '(viii) \"original predecessor entity\" means predecessor entity in respect of the first amalgamation.'.","html":"<p><b>Amendment of section 72AA.</b></p><p><b>15. </b> In section 72AA of the Income-tax Act, with effect from the 1st April, 2026,—</p><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>i</i>)</td><td></td><td>the following proviso shall be inserted, namely:—</td></tr><tr><td></td><td></td><td>\"<b>Provided</b> that where any scheme of such amalgamation is brought into force on or after the 1st April, 2025, any loss forming part of the accumulated loss of the predecessor entity, being—</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>a</i>)</td><td></td><td>the banking company or companies; or</td></tr><tr><td>(<i>b</i>)</td><td></td><td>the amalgamating corresponding new bank or banks; or</td></tr><tr><td>(<i>c</i>)</td><td></td><td>the amalgamating Government company or companies,</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td></td><td></td><td>as the case may be, which is deemed to be the loss of the successor entity, being—</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>i</i>)</td><td></td><td>the banking institution or company; or</td></tr><tr><td>(<i>ii</i>)</td><td></td><td>the amalgamated corresponding new bank or banks; or</td></tr><tr><td>(<i>iii</i>)</td><td></td><td>the amalgamated Government company or companies,</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td></td><td></td><td>as the case may be, shall be carried forward in the hands of the successor entity for not more than eight assessment years immediately succeeding the assessment year for which such loss was first computed for original predecessor entity.\";</td></tr><tr><td>(<i>ii</i>)</td><td></td><td>in the <i>Explanation</i>, after clause (<i>vii</i>), the following clause shall be inserted, namely:—</td></tr><tr><td></td><td></td><td>'(<i>viii</i>) \"original predecessor entity\" means predecessor entity in respect of the first amalgamation.'.</td></tr></table></div>","words":196,"text_source":"published"},"classification":[],"instruments":[],"judgments":[],"corresponds_to":[],"url":"https://indiacode.ecourtsindia.com/finance-act-2025/section/15/","note":null,"source_note":"Harvested from the Income Tax Department's own portal at incometaxindia.gov.in, which publishes the Finance Acts section by section. India Code carries none of them: its Central community holds the Acts that stand as general law, and a Finance Act is an amending and rate-fixing instrument.","judgments_note":"Judgment holdings are the ratio decidendi as extracted from the order by eCourts India, reproduced unaltered. Reported judgments only.","licence":"Published with commentary and other original matter under s.52(1)(q)(ii), Copyright Act 1957."}