CAPITAL GAIN TAX ON CONVERSION OF COMPANY TO LLP

[VEMULA CHANDRASEKHAR]

Dear friends

My query is that one of My client which is a private Limited Company wanted to convert in to LLP . The value of the assets as on 31-03-2018 is ₹ 10 crores. Please advise will there be any capital gain tax

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[CASusheel Gupta]

Please refer to section 47( xiiib) of IT Act, 1961

CA Susheel Gupta

9811004443

AI Summary

Capital Gains Tax Implications for Converting Private Company to LLP Explained Under Section 47(xiiib) of Income Tax Act 1961. A query was raised regarding the capital gains tax implications of converting a private limited company into a Limited Liability Partnership (LLP), with the company's assets valued at 10 crores as of March 31, 2018. A response was provided, advising to refer to Section 47(xiiib) of the Income Tax Act, 1961, which addresses tax exemptions on such conversions under specific conditions.