Amendment of section 72A

In force As on 06 Oct 2026

Ministry Finance Cited by 4 provisions

Section 25 of the Finance Act, 2021 deals with amendment of section 72A. Amendment of section 72A. 25. In section 72A of the Income-tax Act, in sub-section (1),— (i) | for clause (c), the following clauses shall be substituted, namely:— "(c) one or more public sector company or companies with one or more public sector company or companies;

Amendment of section 72A.
25. In section 72A of the Income-tax Act, in sub-section (1),—
(i) for clause (c), the following clauses shall be substituted, namely:—
"(c) one or more public sector company or companies with one or more public sector company or companies; or
(d) an erstwhile public sector company with one or more company or companies, if the share purchase agreement entered into under strategic disinvestment restricted immediate amalgamation of the said public sector company and the amalgamation is carried out within five year from the end of the previous year in which the restriction on amalgamation in the share purchase agreement ends,";
(ii) after the long line, the following shall be inserted, namely:—
'Provided that the accumulated loss and the unabsorbed depreciation of the amalgamating company, in case of an amalgamation referred to in clause (d), which is deemed to be the loss or, as the case may be, the allowance for unabsorbed depreciation of the amalgamated company, shall not be more than the accumulated loss and unabsorbed depreciation of the public sector company as on the date on which the public sector company ceases to be a public sector company as a result of strategic disinvestment.
Explanation.—For the purposes of clause (d),—
(i) "control" shall have the same meaning as assigned to in clause (27) of section 2 of the Companies Act, 2013 (18 of 2013);
(ii) "erstwhile public sector company" means a company which was a public sector company in earlier previous years and ceases to be a public sector company by way of strategic disinvestment by the Government;
(iii) "strategic disinvestment" means sale of shareholding by the Central Government or any State Government in a public sector company which results in reduction of its shareholding to below fifty-one per cent along with transfer of control to the buyer.'.
Section 25, The Finance Act, 2021.

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Referred to by 4

Questions about Section 25

What does Section 25 of the Finance Act deal with?

Section 25 of the Finance Act is headed "Amendment of section 72A". Amendment of section 72A. 25. In section 72A of the Income-tax Act, in sub-section (1),— (i) | for clause (c), the following clauses shall be substituted, namely:— "(c) one or more public sector company or companies with one or more public sector company or companies;

How do I find court cases under Section 25 of the Finance Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act 2021 25, section 25 Finance Act 2021, section 25 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 25 of the Finance Act, and has it changed?

Its own text turns on Companies Act 2 (Definitions), Income-tax Act 72A (Provisions relating to carry forward and set off of accumulated loss and unabsorbed depreciation allowance in amalgamation or demerger, etc), so none of them can safely be read on its own. 4 other provisions in this corpus refer back to it.

When was the Finance Act enacted?

Finance Act was enacted in 2021. India Code records no commencement date for it. It is in force as at the date shown on this page.

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(i)		for clause (c), the following clauses shall be substituted, namely:—
		"(c) one or more public sector company or companies with one or more public sector company or companies; or
		(d) an erstwhile public sector company with one or more company or companies, if the share purchase agreement entered into under strategic disinvestment restricted immediate amalgamation of the said public sector company and the amalgamation is carried out within five year from the end of the previous year in which the restriction on amalgamation in the share purchase agreement ends,";
(ii)		after the long line, the following shall be inserted, namely:—
		'Provided that the accumulated loss and the unabsorbed depreciation of the amalgamating company, in case of an amalgamation referred to in clause (d), which is deemed to be the loss or, as the case may be, the allowance for unabsorbed depreciation of the amalgamated company, shall not be more than the accumulated loss and unabsorbed depreciation of the public sector company as on the date on which the public sector company ceases to be a public sector company as a result of strategic disinvestment.
		Explanation.—For the purposes of clause (d),—

(i)		"control" shall have the same meaning as assigned to in clause (27) of section 2 of the Companies Act, 2013 (18 of 2013);
(ii)		"erstwhile public sector company" means a company which was a public sector company in earlier previous years and ceases to be a public sector company by way of strategic disinvestment by the Government;
(iii)		"strategic disinvestment" means sale of shareholding by the Central Government or any State Government in a public sector company which results in reduction of its shareholding to below fifty-one per cent along with transfer of control to the buyer.'.