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 on company-to-LLP conversion: consult section 47(xiiib) of the Income-tax Act for exemption guidance.
Query whether conversion of a private limited company into an LLP triggers capital gain tax; respondent referred to section 47(xiiib) of the Income-tax Act, 1961 as the relevant provision to determine the tax consequences of such a conversion.