CBDT clarification regarding carry forward of losses in case of change in shareholding due to strategic disinvestment

CBDT through press release dated 10 September, 2021 has issued clarification regarding carry forward of losses in case of change in shareholding due to strategic disinvestment. Previously, any 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 shall 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, fifty-one per cent of the voting power of the erstwhile public sector company. Necessary legislative amendments for the above decision shall be proposed in due course of time.

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