M & A Tax Benefit For All Banks Likely

The finance ministry is planning to extend the benefit of liberalised tax treatment of mergers and acquisitions under Section 72A of the Income-Tax Act to private banks.

Section 72A of the I-T Act allows an entity to carry forward losses and unabsorbed depreciation if it chooses to take over a loss-making bank.

The Budget for 2003-04 made the provisions of Section 72A applicable only to nationalised banks.