Loss-making companies get a sweet pill

For banks, tax relief will now ease the dead-weight of taking over another bank with accumulated losses. The Budget has allowed banks to carry forward and set-off of accumulated loss and unabsorbed depreciation allowance in bank amalgamations.

The benefits will be available under mergers that take place as a result of a scheme notified by the Centre. The merger of Global Trust Bank with Oriental Bank of Commerce is an example of such an amalgamation. This relief will be available for take-over of loss-making companies, but not for banks.