SC ruling casts a tax shadow on merger share-swap deals
Published on: Jan. 12, 2026, 12:34 a.m. | Source: The Economic Times
A Supreme Court ruling impacts shareholders in company mergers. Those receiving new shares via share-swap may face taxes on gains, even without selling. This applies if their old shares were considered 'stock-in-trade'. The difference in value between old and new shares will be taxed as business income. This decision could lead to more tax disputes for investors and traders.
