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Startups and investors are seeking a slew of reforms on the current taxation norms including parity for capital gains tax treatment between unlisted and listed securities , , magazine 14 January 2023, Pre-Budget Expectations, union budget 2023
Even with the contemporary heightened volatility the industry leaders, young entrepreneurs and investors are expecting worthy announcements from Union Budget 2023,
Listed companies that undertook slump sale may have to restate earnings following new rules SECTIONS Share Synopsis The new slump sale rules have a precise methodology that a company is required to use while calculating the valuation of the slump sale transaction. In most cases, this would mean that companies would see the transaction value go up, along with the tax liability. Agencies In some cases, internal restructuring and inter-group transactions too are being done through this method. Listed companies that have undertaken slump sales and declared their results will have to recalculate t...
Businesses may have to reassess tax liability, ongoing M&As after slump sale rule change SECTIONS Share Synopsis The slump sale amendment rules notified on Monday by the Central Board of Direct Taxes provide for taking the higher of the fair value of the business transferred or the fair value of the consideration received as the deemed consideration for computing capital gains on slump sale or exchange, even if the actual consideration received is lower. Businesses would have to reassess their tax liabilities and possibly re-structure mergers and acquisitions in order to comply with new rules...
The merger and acquisitions (M&A) transactions are set to become costlier after the Budget announced on Monday proposed that goodwill (including existing goodwill) will not be eligible for tax depreciation. The amendments on goodwill are retrospective as depreciation on any past goodwill, partly claimed in the past, would not be available going forward. Therefore, while the amendment is prospective, it would adversely impact any goodwill created before March 31, 2021, say tax experts. The amendment is retrospective from April 1, 1998 and will also impact internal corporate restructuring whe...