**Policy Summary:**
This notification, S.O. 3204(E), issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, specifies conditions under which the reconstruction or splitting up of a company (formerly a public sector company but ceased to be so due to share transfer by the Central Government) into separate companies will be deemed a demerger, for the purposes of section 2, clause (19AA), Explanation 5 of the Income-tax Act, 1961.
The conditions are: (i) the reconstruction or splitting up must transfer assets of the demerged company to the resulting company to fulfill conditions outlined in the Share Holders Agreement and Share Purchase Agreement; and (ii) the resulting company must be a public sector company.
This notification is numbered 93/2016 and bears file number 149251/2015-TPL. The issuing authority is Pravin Rawal, Director, Tax Policy and Legislation. The notification was issued in New Delhi on October 14, 2016, and published by the Controller of Publications, Delhi.
Key Entities Referenced
Central Government: The executive branch of the Government of India.
Ministry of Finance: A department of the Government of India responsible for financial matters.
Department of Revenue: A department under the Ministry of Finance responsible for tax collection and administration.
Central Board of Direct Taxes: A body within the Department of Revenue responsible for direct tax policies and administration.
New Delhi: The capital city of India, where the notification was issued.
Income-tax Act, 1961: The primary legislation governing income tax in India.
Share Holders Agreement: An agreement outlining the rights and responsibilities of shareholders in a company.
Share Purchase Agreement: An agreement documenting the terms and conditions of a share transaction.
jftLVªh laö Mhö ,yö&33004@99 REGD. NO. D. L.-33004/99
vlk/kj.k
EXTRAORDINARY
Hkkx II—[k.M 3—mi&[k.M (ii)
PART II—Section 3—Sub-section (ii)
izkf/dkj ls izdkf'kr
PUBLISHED BY AUTHORITY
la- 2471] ubZ fnYyh] 'kqØokj] vDrwcj 14] 2016@vkf'ou 22] 1938
No. 2471] NEW DELHI, FRIDAY, OCTOBER 14, 2016/ASVINA 22, 1938
ििििवववव(cid:3)(cid:3)(cid:3)(cid:3)ममममं(cid:6)ं(cid:6)ं(cid:6)ं(cid:6)ााााललललयययय
((((ररररााााजजजज(cid:4)(cid:4)(cid:4)(cid:4)वववव ििििववववभभभभाााागगगग))))
((((ककककेेेे(cid:8)(cid:8)(cid:8)(cid:8)(cid:9)(cid:9)(cid:9)(cid:9)ीीीीयययय (cid:13)(cid:13)(cid:13)(cid:13)(cid:14)(cid:14)(cid:14)(cid:14)यय यय (cid:15)(cid:15)(cid:15)(cid:15) ककककरररर बबबबोोोोडडडड))(cid:19)(cid:19))(cid:19)(cid:19))
अअअअििििधधधधससससचचूूचचूू ननननाााा
नई (cid:1)द(cid:3)ली, 14 अ(cid:7)त ूबर, 2016
((((आआआआयययय----ककककरररर))))
3333222200004444((((अअअअ))))....————के(cid:3) (cid:5)ीय सरकार आय-कर अिधिनयम 1961 क(cid:7) धारा 2 के खडं (19कक) के (cid:11)प (cid:13)ट ीकरण 5
ककककाााा....आआआआ.... ,
(cid:15)ारा (cid:16)द(cid:18) त शि(cid:22)य(cid:24) का (cid:16)योग करते (cid:27)ए यह िविन(cid:29)द(cid:13)ट करती ह ै क कसी कंपनी का पुनग%ठन या िवभाजन जो क*(cid:5)ीय
, ,
सरकार (cid:15)ारा उसके शेयर(cid:24) का पृथक कंपिनय(cid:24) म* अंतरण करने पर पि1लक से3ट र कंपनी नह4 रहती है िन5विलयन माना
,
जाएगा य द िन6 निलिखत शत8 पूरी होती ह ,ै अथा%त:—
(i) ऐसा पनगु %ठन या िवभाजन िन5वलीन कंपनी क(cid:7) क(cid:3)ह ी आि(cid:11)तय(cid:24) को शेयर धारण करार और शेयर =य करार म >
,
व5णत शत? को (cid:16)भावी करने के िलए, प@रणामी कंपनी म> अतं @रत करन े के िलए कया गया ह;ै और
प@रणामी कंपनी कोई पि1लक से3टर कंपनी ह।ै
(ii)
अिधसूचना सBं य ा 93/2016 संBय ा / /2015-टीपीएल
[ , 149251 ]
(cid:16)वीण रावल िनदेशक (कर नीित और िवधान)
,
4841 GI/2016 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 14th October, 2016
(INCOME-TAX)
S.O. 3204(E).— In exercise of the powers conferred by Explanation 5 to clause (19AA) of section 2 of the
Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies that the reconstruction or splitting up of a
company which ceased to be a public sector company as a result of transfer of its shares by the Central Government, into
separate companies, shall be deemed to be a demerger if the following conditions are fulfilled, namely:—
(i) that such reconstruction or splitting up has been made to transfer any assets of the demerged company to the
resulting company to give effect to the conditions mentioned in the Share Holders’ Agreement and Share
Purchase Agreement; and
(ii) that the resulting company is a public sector company.
[Notification No. 93/2016, No.149/251/2015-TPL]
PRAVIN RAWAL, Director (Tax Policy and Legislation)
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.