MUMBAI:The government may consider resolving two of the biggest tax roadblocks looming over a successful conclusion of the insolvency process in the upcoming Budget, two people close to the development said.
The government may allow carrying forward of losses for eight years for buyers of companies in the insolvency process. This is not allowed under the current tax laws and buyers have been asking for such a relief.
It may also address industry fears of the income tax department challenging the valuations after the conclusion of deals. “The government allowed carrying forward of losses for eight years for the startups last year. Similar exception is being considered for deals happening in insolvency,” a person close to the…
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