As per the provisions of Section 47 of the Income Tax Act, allotment of shares on the merger of two companies is not treated as a transfer.
2 min read . 07:37 AM IST
No tax implications on the merger of HDFC and HDFC Bank. Combined holding period considered for capital gains. Fractional shares taxed at 20% if held for over 12 months, at slab rate if held for less.
