|Question And Answer|
|Subject:||Taxability of Capital Gain on Conversion|
|Answered by:||Research Team|
|Tags:||Capital Gains, conversion, Conversion of LLP|
|Date:||May 29, 2021|
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A Private limited is intending to convert into LLP , with same economic interest of share holder and partner .
Will there be any capital gain tax in the hands of shareholder upon surrender of shares and getting capital in LLP.
No There will not be Capital gain on conversion . The querist has to comply with section 47(xiiib) read with section 56 or 57 of the Limited Liability Partnership Act 2008.
For more information the querist can read the article published in www.itatonline.org on 8-8-2009 titled Section 56(2) (vii) and Limited Liability Partnership : New Controversies.
Disclaimer: This article is only for general information and is not intended to provide legal advice. Readers desiring legal advice should consult with an experienced professional to understand the current law and how it may apply to the facts of their case. Neither the author nor itatonline.org and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this article nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of itatonline.org
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