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The move will help industry to reorganise and restructure operations in sync with the rapidity of changes taking place in the business environment as well as to deal with the emergence of new sectors and segments, it said.
Currently, M&A tax benefits are limited to industrial undertakings and select services such as shipping, hotels, aircraft and banking.
In its pre-Budget memorandum, CII said that those benefits "should be extended to all businesses, including telecom, financial services, entertainment, sports, information technology and IT enabled services, among others".
The industry body argued that the term 'industrial undertakings' has excluded a large number of business activities including those operating in crucial services sector from the benefit.
It also asked for simplification of provisions of Section 72A in respect of the stringent conditions applicable for the amalgamating company like losses/depreciation being unabsorbed for at least three years.
"A re-look at this provision would help revive sick units and help them to re-position their business operations to suit current market conditions," it added.
The Finance Minister is scheduled to present the General Budget on February 28.
