## Amalgamation [Section 2(1B)]
### Meaning
Amalgamation means either:
- One or more companies merging into another company, or
- Two or more companies combining to form a single new company.
### Terminology
| Term | Meaning |
|---|---|
| Amalgamating company | The company/companies that are merging (ceasing to exist) |
| Amalgamated company | The company that absorbs the others, or the new company formed |
### Conditions (all must be satisfied)
1. All property of the amalgamating company(ies) becomes the property of the amalgamated company.
2. All liabilities of the amalgamating company(ies) become the liabilities of the amalgamated company.
3. At least 75% of shareholders (in value) of the amalgamating company — excluding shares already held by the amalgamated company or its subsidiary — must become shareholders of the amalgamated company.
### What is NOT amalgamation
- One company merely purchasing the property of another.
- Property transferred after the company is wound up and then distributed to another company.
Why the conditions matter: Only if Section 2(1B) is satisfied do the tax neutralities (Sec 47(vi), 47(vii), carry-forward of holding period, etc.) apply.