Section 35DD → Section 36
Amortisation of expenditure in case of amalgamation or demerger
Quick Answer
Section 35DD of the Income Tax Act, 1961 (Amortisation of expenditure in case of amalgamation or demerger) corresponds to Section 36 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 35DD
Provision Summary
Allows an Indian company to deduct expenses incurred wholly and exclusively for amalgamation or demerger in 5 equal annual installments.
Sec 36
Provision Summary
Retained. Supports corporate restructuring by making legal and professional fees tax-deductible over time.
Key Changes & Highlights
- No major change.
Frequently Asked Questions
What does Section 35DD of the Income Tax Act 1961 deal with?
Section 35DD (Amortisation of expenditure in case of amalgamation or demerger) Allows an Indian company to deduct expenses incurred wholly and exclusively for amalgamation or demerger in 5 equal annual installments.
What is the new section number for Section 35DD under the Direct Tax Code 2025?
Section 35DD of the ITA 1961 maps to Section 36 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 35DD under the new tax code?
Section 35DD is marked as "Retained" with status "Active". Impact: Medium - Important for corporate M&A teams.
What are the key changes to Section 35DD under DTC 2025?
No major change.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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