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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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.