SYNOPSIS

Name of Student:
Class: M.Com-II SEM-IV
Roll No:

Project Topic: TAX PLANNING OF LIMITED COMPANIES IN

CASE OF AMALGAMATION OF COMPANIES

INTRODUCTION

Tax planning is a broad term that is used to describe the processes utilized by individuals and
businesses to pay the taxes due to local, state, and federal tax agencies. The process includes such
elements as managing tax implications, understanding what type of expenses are tax deductible
under current regulations, and in general planning for taxes in a manner that ensures the amount of
tax due will be paid in a timely manner. One of the main focuses of tax planning is to apply
current tax laws to the revenue that is received during a given tax period. The revenue may come
from any revenue producing mechanism that is currently in operation for the entity concerned. For
individuals, this can mean income sources such as interest accrued on bank accounts, salaries,
wages and tips, bonuses, investment profits, and other sources of income as currently defined by
law. Businesses will consider revenue generated from sales to customers, stock and bond issues,
interest bearing bank accounts, and any other income source that is currently considered taxable
by the appropriate tax agencies.

NATURE OF THE STUDY

The nature of the study is a doctrinal one. The subject matter of the study being on the notions of
Tax Benefits in Corporate business life, it would have been impracticable to carry out a non-
doctrinal research project without analyzing such clauses and that too in absentia of the latest case
laws. Therefore, the researcher has opted for doctrinal research project.
SCOPE OF THE STUDY

It is made clear at the outset that the scope is confined to the provisions of

1. Income Tax Act, 1961

2. Securities laws
3. Exchange control regulations
4. Company law
5. Stamp Duty laws

OBJECTIVE OF THE STUDY

The object behind carrying out this non-doctrinal research on the subject matter of the provisions
of Indian Tax Act is to have thorough understanding of Benefits of Tax whenever a company
amalgamates with another and the reasons and objects envisaged behind the same.

HYPOTHESIS

In order to conduct a research work, some important hypotheses are to be formulated. The focal
points and assumptions are normally available through the formulation of hypothesis. The major
hypotheses developed on the basis of study of available literature and evaluation of primary as
well as secondary data and work done earlier including related studies is that:

i) The researcher also presumes that for the interpretation of the Act, Judicial Trend has
to be seen.

RESEARCH QUESTIONS

What are the benefits of tax while dealing in context of Amalgamation?

RESEARCH METHODOLOGY

The quality and value of research depends upon the proper and particular methodology adopted
for the completion of research work. Looking at the vastness of the research topic, doctrinal legal
research methodology have been adopted. To make an authenticated study of the research topic
‗Tax Benefits of Amalgamation‘enormous amount of study material is required. The relevant
information and data necessary for its completion have been gathered from both primary as well
as secondary sources available in the books, journals, periodicals, research articles and
proceedings of the books on Taxation law and websites. Keeping in view the need of present
research, various cases filed in the Supreme Court as well as in the High Court on the issue of
interpretation of non obstante clauses and the judgments therein have also been decided to use as a
source of information. The judgments pronounced in the cases will be selected for analyses in
detail and included a means of diagnosis. From the data, material and information collection,
researcher will proposed to critically analyse the topic of the study and tries to reach the core
aspects of the study.

IMPORTANCE OF THE STUDY

Being a citizen of India, paying tax is one of our constitutional duties in return of fundamental
rights. But paying tax is always a painful task as it directly impacts on the residual income of the
taxpayers. So all individual always try to reduce tax liability by managing their financial affairs.
The total income earned by an individual may be from salary, house property, business or
profession, capital gain and other sources. Tax can be reduced either by evasion or avoidance or
planning. Tax evasion is illegal, tax avoidance is not a crime but tax planning is ethical and legal.
Tax planning is important for every assessee to reduce their tax liability and compliance with the
income tax rules. To enjoy the benefits of tax planning, the assessee must know different
provisions of tax saving schemes available in the laws

CHAPTERISATION

Ch. No. 1. Introduction.

Ch. No. 2. Executive Summary

Ch. No. 3. Research Methodology

Ch. No. 4. Study of Cases Selected

Ch. No. 5. Conclusion

Bibliography

Reference