Income Tax constitutes the biggest transaction cost in M&A transactions. Therefore, planning restructuring exercise from the Income Tax angle makes a lot of sense.

Income Tax constitutes the biggest transaction cost in M&A transactions. Therefore, planning restructuring exercise from the Income Tax angle makes a lot of sense.

In general terms, it may be understood as a company buying back its own shares from its shareholders. Generally the buyback is carried out under section 77A of the Companies Act.

“Slump sale" means the transfer of one or more undertakings as a result of the sale for a lump sum consideration without values being assigned to the individual assets and liabilities in such sale.