Section 2(1B) → Section 2(6)
Definition of Amalgamation
Quick Answer
Section 2(1B) of the Income Tax Act, 1961 (Definition of Amalgamation) corresponds to Section 2(6) of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 2(1B)
Section 2(1B) of the 1961 Act sets out the rules on definition of amalgamation. Defines the merger of one or more companies with another company, subject to conditions like transfer of all assets/liabilities and 3/4th shareholders.
Under the Income-tax Act, 2025 (effective 1st April 2026), Section 2(1B) is retained and renumbered as Section 2(6) of the Income-tax Act, 2025. Retained. Alignment with the Companies Act, 2013 maintained.
The transition impact on Section 2(1B) is assessed as High. Foundational for corporate restructuring.
Sec 2(1B)
Provision Summary
Defines the merger of one or more companies with another company, subject to conditions like transfer of all assets/liabilities and 3/4th shareholders.
Sec 2(6)
Provision Summary
Retained. Alignment with the Companies Act, 2013 maintained.
Key Changes & Highlights
- No major changes. Crucial for M&A tax neutrality.
Related Sections
Frequently Asked Questions
Which subject does Section 2(1B) of the 1961 Act cover?
Section 2(1B) of the Income Tax Act, 1961 covers definition of amalgamation. Defines the merger of one or more companies with another company, subject to conditions like transfer of all assets/liabilities and 3/4th shareholders.
What is the new section number for Section 2(1B) under the Income-tax Act, 2025?
Section 2(1B) of the Income Tax Act, 1961 maps to Section 2(6) of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Alignment with the Companies Act, 2013 maintained.
How does the Income-tax Act, 2025 affect Section 2(1B) in practice?
The transition impact for Section 2(1B) is rated High. Foundational for corporate restructuring.
Disclaimer: This mapping of Section 2(1B) (Definition of Amalgamation) to Section 2(6) of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 2(1B) is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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