IBBI Mandates Disclosure of Carry Forward Losses for Resolution Professional

The Insolvency and Bankruptcy Board of India (IBBI) has issued a circular requiring insolvency professionals to include a dedicated section in the Information Memorandum (IM) detailing the carry forward of losses under the Income Tax Act, 1961.

This section must specify the quantum of losses, breakdown under specific heads, applicable time limits, and explicit mention if no losses exist. 

The directive aims to ensure transparency, enabling resolution applicants to make informed decisions.

Issued under Section 196 of the Insolvency and Bankruptcy Code, 2016, the circular strengthens the financial disclosures of distressed companies, ensuring clarity for stakeholders involved in the corporate insolvency resolution process.