Under the Income-tax Act, 2025, on amalgamation of a company

There is transfer of capital assets from amalgamating company to amalgamated company and therefore capital gain can arise in the hands of the amalgamating company.

There is transfer of capital assets from the amalgamating company to amalgamated company and hence capital gain can arise in the hands of the shareholders of the amalgamating company.

Succession of capital assets of the amalgamating company by the amalgamated company is not regarded as a transfer under the Income-tax Act, 2025 and hence no capital gain arises.

All are incorrect.