Tuesday , February 7 2023

Mumbai: The government has withdrawn a tax benefit for mergers and acquisitions (M&A) ...

Tax benefit on mergers and acquisitions withdrawn – Economic Times

Mumbai: The government has withdrawn a tax benefit for mergers and acquisitions (M&A) that would result in marginal increase in the cost of transactions. The government in the Budget 2021 said that no depreciation would be allowed on goodwill. Up until now many companies would end up buying companies more than what the “book value” of the company is on its financial statements. This would mean that the remaining amount would be considered goodwill. Most companies would claim depreciation on the goodwill over the years, resulting in lower taxation. This will not be allowed henceforth, resulting in a jump in …

 

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