https://www.taxtmi.com/article/detailed?id=12014 The core issue is whether transferring personal assets into an entity controlled by the transferor to avoid capital gains tax is a colourable device or permissible tax planning. Prior case-law allowed scrutiny for sham transactions where transfers effectively converted assets into benefit without capital gains liability. The insertion of section 45(3) altered the regime by differentiating transfers to certain non-company entities and was intended to legislate over aspects of earlier judicial conclusions, creating a tension over whether conversion into an LLP to attract section 45(3) is legitimate or suspect. en-us Thu, 02 Nov 2023 09:11:02 +0530 Thu, 02 Nov 2023 09:11:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=12014 The core issue is whether transferring personal assets into an entity controlled by the transferor to avoid capital gains tax is a colourable device or permissible tax planning. Prior case-law allowed scrutiny for sham transactions where transfers effectively converted assets into benefit without capital gains liability. The insertion of section 45(3) altered the regime by differentiating transfers to certain non-company entities and was intended to legislate over aspects of earlier judicial conclusions, creating a tension over whether conversion into an LLP to attract section 45(3) is legitimate or suspect. Articles Income Tax Thu, 02 Nov 2023 09:11:02 +0530 https://www.taxtmi.com/article/detailed?id=12014