https://www.taxtmi.com/forum/issue?id=3491 Conversion of a private company into an LLP will not attract capital gains if conditions of section 47(xiiib) are met: all assets and liabilities transfer to the LLP; all shareholders become partners with equivalent capital and profit shares; shareholders receive no consideration except partnership interest and profit share; the aggregate profit share of those shareholders remains at least fifty percent for the prescribed period; the company's prior turnover is within the statutory threshold; and no distribution is made out of accumulated profits to partners during the restraint period. Breach results in taxability of the successor LLP for the sheltered gains. en-us Fri, 14 Oct 2011 10:27:24 +0530 Thu, 23 Jan 2025 15:58:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=3491 Conversion of a private company into an LLP will not attract capital gains if conditions of section 47(xiiib) are met: all assets and liabilities transfer to the LLP; all shareholders become partners with equivalent capital and profit shares; shareholders receive no consideration except partnership interest and profit share; the aggregate profit share of those shareholders remains at least fifty percent for the prescribed period; the company's prior turnover is within the statutory threshold; and no distribution is made out of accumulated profits to partners during the restraint period. Breach results in taxability of the successor LLP for the sheltered gains. Discussion-Forum Income Tax Fri, 14 Oct 2011 10:27:24 +0530 https://www.taxtmi.com/forum/issue?id=3491