AI, Indian merger may get income-tax relief

The proposed merger of Indian and Air India may get income-tax relief. The finance ministry has indicated that it would consider the request of the ministry of civil aviation to provide income-tax relief under section 72 A of the Act for the proposal favourably, reports Business Line.
Both the state-owned airlines have accumulated losses on their balance sheets. This provision deals with carry-forward and set-off of accumulated losses and unabsorbed depreciation in amalgamation or demerger cases.
It is understood that the proposed I-T relief will apply only to the merger of Indian and Air India and will not be applicable to the merger of other airlines in the domestic sector as yet.
30/11/06 Myiris.com

To Read the News in full at Source, Click the Headline