Govt allows disinvested PSUs to set off past losses

By: |
September 11, 2021 4:00 AM

“Accordingly, loss incurred in any previous year prior to, and including, the previous year of strategic disinvestment shall be carried forward and set off by the erstwhile public sector company.”

“In order to facilitate the strategic disinvestment, it has been decided that Section 79 of the Income-tax Act, 1961, shall not apply to an erstwhile public sector company which has become so as a result of strategic disinvestment,” the Central Board of Direct Taxes (CBDT) said.“In order to facilitate the strategic disinvestment, it has been decided that Section 79 of the Income-tax Act, 1961, shall not apply to an erstwhile public sector company which has become so as a result of strategic disinvestment,” the Central Board of Direct Taxes (CBDT) said.

Ahead of the strategic disinvestment of Air India and fuel retailer-cum-refiner BPCL, the government on Friday said losses incurred by disinvested public sector undertakings (PSUs) in previous years can be carried forward and set off.

“In order to facilitate the strategic disinvestment, it has been decided that Section 79 of the Income-tax Act, 1961, shall not apply to an erstwhile public sector company which has become so as a result of strategic disinvestment,” the Central Board of Direct Taxes (CBDT) said. “Accordingly, loss incurred in any previous year prior to, and including, the previous year of strategic disinvestment shall be carried forward and set off by the erstwhile public sector company.”

“The above relaxation will cease to apply from the previous year in which the company, that was the ultimate holding company of such erstwhile public sector company immediately after completion of the strategic disinvestment, ceases to hold, directly or through its subsidiary or subsidiaries, 51% of the voting power of the erstwhile public sector company” it said.

Necessary legislative amendments for the above decision shall be proposed in due course of time, CBDT said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Discom reforms: All states on board, says Union power minister RK Singh
2Moody’s affirms Ba2 rating of GMR Hyderabad International Airport
3Dish TV gets requisition from Yes Bank to call EGM