Snippets
Precision Acquisition: Choose Your Assets
The Asset Sale allows for strategic selectivity, letting buyers acquire only the desired buildings, machinery, or IP, ensuring capital is spent exclusively on core value drivers while leaving unwanted liabilities behind.
Direct Ownership: Skip the Asset Line
Share sale structure facilitates a direct change in corporate stewardship, where the transaction is between the shareholders, leaving the target company legally intact with all its historical obligations.
Slump Sale: Sell the Business, Skip the Breakdown.
When speed and simplicity matter, a slump sale delivers. The whole undertaking moves for one lump-sum price, offering a clean, structured way to exit without itemizing every asset and liability.
Section 281 Certificate: Buyer’s Essential M&A Protection
A clean M&A closing demands immunity from the seller’s past tax disputes. Section 281 mandates obtaining the Assessing Officer’s permission, the Section 281 Certificate, which is the only true legal mechanism to protect the acquired assets.
Ensuring Tax Neutrality: The Golden Rules for Corporate Mergers in India
Tax neutrality in M&A offers immense relief for both companies and shareholders. This exemption is secured only by precisely executing the statutory requirements laid out in Sections 2(1B) and 47 of the Income Tax Act.
Demergers in India: Achieving Tax-Neutral Business Separation
A well-executed demerger can drive value creation and operational focus. This overview highlights the critical legal criteria and tax exemptions required to ensure a smooth, compliant, and tax-efficient corporate split.
From Arbitrage to Alignment: Decoding the New Buyback Taxation Regime
The Finance Act 2024 has fundamentally realigned the Indian M&A landscape by shifting the buyback tax burden from corporations to shareholders. This transition from corporate tax to “deemed dividends” demands a total rethink of capital exit strategies for HNIs and promoters.