Jul 08, 2019
Change in I-T Act may lure buyers to IL&FS
A key budget proposal will help sweeten the deal for any potential suitors of Infrastructure Leasing & Financial Services (IL&FS), which has been under the supervision of a government-designated board after defaulting on repayments in September last year.
The proposed amendment to Section 79 of the Income-Tax Act will allow buyers to carry forward losses in companies where the government has seized control. Experts said this was aimed at resolving the IL&FS situation. A buyer will be able to set off historical losses in IL&FS and its subsidiaries against future profits, lowering taxable income.