{"id":8930,"date":"2025-04-16T11:33:32","date_gmt":"2025-04-16T11:33:32","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=8930"},"modified":"2025-05-01T09:20:19","modified_gmt":"2025-05-01T09:20:19","slug":"rp-disclosure-of-information-relating-to-c-f-of-loss-in-im","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/rp-disclosure-of-information-relating-to-c-f-of-loss-in-im\/","title":{"rendered":"RP: Disclosure of Information Relating to C\/F of Loss in IM"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4872\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Liquidation-Estate-under-the-IBC-Code.jpg\" alt=\"Liquidation Estate under the IBC Code\" width=\"962\" height=\"577\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69ea6ea320194\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69ea6ea320194\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/rp-disclosure-of-information-relating-to-c-f-of-loss-in-im\/#RP_required_to_Disclosure_of_Information_Relating_to_Carry_Forward_of_Losses_in_Information_Memorandum\" title=\"RP required to Disclosure of Information Relating to Carry Forward of Losses in Information Memorandum\u00a0\">RP required to Disclosure of Information Relating to Carry Forward of Losses in Information Memorandum\u00a0<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/rp-disclosure-of-information-relating-to-c-f-of-loss-in-im\/#Quantum_of_Carryforward_Losses_Available_under_IBC\" title=\"Quantum of Carryforward Losses Available under IBC : \">Quantum of Carryforward Losses Available under IBC : <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/rp-disclosure-of-information-relating-to-c-f-of-loss-in-im\/#Our_Core_Expertise\" title=\"Our Core Expertise:\">Our Core Expertise:<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"RP_required_to_Disclosure_of_Information_Relating_to_Carry_Forward_of_Losses_in_Information_Memorandum\"><\/span><span style=\"color: #000080;\"><strong>RP required to Disclosure of Information Relating to Carry Forward of Losses in Information Memorandum\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>IPs shall include a dedicated section in the Information Memorandum, explicitly detailing the carryforward of losses under the Income Tax Act, 1961. IBBI had earlier amended Regulation 36 of the <em>IBC (Insolvency Resolution Process for Corporate Persons) Regulations, 2016<\/em> (\u201cCIRP Regulations\u201d) to mandate the disclosure of carry forward of losses as per the <em>Income Tax Act, 1961<\/em> in the IM. This enhanced disclosure requirement aims to provide potential resolution applicants with a clearer and more comprehensive picture of the corporate debtor\u2019s financial and tax position, thereby enabling them to develop more informed and feasible resolution plans, including any potential benefits under the tax laws. This direction is issued under the powers conferred upon the Board under Section 196 of the IBC <em>2016<\/em>. In addition, IPs were advised to ensure a comprehensive and accurate capture of such details in the IM.<\/p>\n<p>Upon review of recent Information Memoranda, the Board has observed that the disclosure of carryforward losses by insolvency professionals is often inadequate or inconsistent. To address this, a more robust and uniform approach is required.<\/p>\n<p>IBBI Direction: Accordingly, all IP\u2019s are hereby directed to include a dedicated section in the IM that explicitly details the carryforward of losses under the Income Tax Act, 1961.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Quantum_of_Carryforward_Losses_Available_under_IBC\"><\/span><span style=\"color: #000080;\"><strong>Quantum of Carryforward Losses Available under IBC : <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Total amount of carryforward losses available to the corporate debtor. This section shall prominently highlight, but not be limited to, the following aspects:<\/p>\n<p style=\"padding-left: 40px;\">a) The quantum of carryforward losses available to the corporate debtor;<br \/>\nb) A breakdown of these losses under specific heads as defined in the Income Tax Act, 1961, including but not limited to:<br \/>\nBusiness Loss (Section 72)<br \/>\n\u2022 Unabsorbed Depreciation (Section 32(2))<br \/>\n\u2022 Speculative Business Loss (Section 73)<br \/>\n\u2022 Capital Losses (Section 74)<br \/>\nc) The applicable time limits for carryforward forward and set-off of each category of losses;<br \/>\nd) In cases where no carryforward losses are available, the IM must explicitly state that no such losses exist under the Income Tax Act, 1961.<\/p>\n<p><span style=\"color: #000080;\"><strong>Time Limits for Utilization :<\/strong> <\/span>Statutory time limits for carry forward and set-off of each category of loss.<\/p>\n<p><span style=\"color: #000080;\"><strong>Declaration if No Losses Exist :<\/strong><\/span> If no carry forward losses are available, the IM must explicitly state this fact<\/p>\n<h3 data-olk-copy-source=\"MessageBody\"><span class=\"ez-toc-section\" id=\"Our_Core_Expertise\"><\/span><span style=\"color: #000080;\">Our Core Expertise:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Corporate Insolvency Resolution Process (CIRP)<\/li>\n<li>Debt Recovery &amp; Creditor Representation<\/li>\n<li>Advisory on Resolution Plans &amp; Restructuring<\/li>\n<li>Representation before NCLT &amp; NCLAT<\/li>\n<li>Liquidation Management &amp; Compliance<\/li>\n<li>IBC-related Legal Drafting, Filing &amp; Appeals<\/li>\n<li>Insolvency Applications for Individuals &amp; Guarantors<\/li>\n<li>Due Diligence &amp; Forensic Audits<\/li>\n<li>Pre-Packaged Insolvency for MSMEs<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>RP required to Disclosure of Information Relating to Carry Forward of Losses in Information Memorandum\u00a0 IPs shall include a dedicated section in the Information Memorandum, explicitly detailing the carryforward of losses under the Income Tax Act, 1961. IBBI had earlier amended Regulation 36 of the IBC (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (\u201cCIRP &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[658],"tags":[1165],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/8930"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=8930"}],"version-history":[{"count":3,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/8930\/revisions"}],"predecessor-version":[{"id":9015,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/8930\/revisions\/9015"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=8930"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=8930"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=8930"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}