Question And Answer
Subject: Taxability of Capital Gain on Conversion
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Date: May 29, 2021

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.

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Answer given by

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 on 8-8-2009 titled Section 56(2) (vii) and Limited Liability Partnership : New Controversies.

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