| Question And Answer | |
|---|---|
| Subject: | 45[2],proprietor converts proprietary business into LLP |
| Category: | Income-Tax |
| Querist: | BKS |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | conversion of proprietorship to an LLP |
| Date: | January 29, 2023 |
when an individual proprietor converts proprietary business into LLP , will there be any capital gains u/s 45 or 50 on assets introduced as capital ?
The transaction of conversion of proprietorship to an LLP is separate from the introduction of assets in the firm. Conversion will not have any tax implications. The introduction of assets in a firm will attract section 45(3) of the Act.
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