{"id":56495,"date":"2025-09-12T22:40:44","date_gmt":"2025-09-12T17:10:44","guid":{"rendered":"https:\/\/itatonline.org\/digest\/?post_type=qa&#038;p=56495"},"modified":"2025-09-12T22:41:43","modified_gmt":"2025-09-12T17:11:43","slug":"cost-of-acquistion-in-case-of-conversion-of-llp-to-compnay","status":"publish","type":"qa","link":"https:\/\/itatonline.org\/digest\/qa\/cost-of-acquistion-in-case-of-conversion-of-llp-to-compnay\/","title":{"rendered":"Cost of acquistion in case of conversion of Company to LLP"},"content":{"rendered":"<p>In case of conversion of a Pvt. Company into LLP, section 47(xiiib) conditions are not satisfied and the conversion is treated as a &#8220;transfer&#8221; and capital gains is taxable in the company\u2019s hands on FMV of Land. In this case, if original cost of purchase of land was 100000\/-, book value was also 100000\/- but at the time of transfer to LLP, the company has paid capital gain tax on FMV Rs. 200000\/-, so when the LLP sell this land in future, its cost of acquisition will be 200000\/- or 100000\/-? This case is not covered in section 49. Can the LLP claim cost of acquisition = FMV on which is company has paid tax? If yes, any backing of provision or case law?<\/p>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[1275],"qa_category":[23],"qa_tag":[520,1164],"class_list":["post-56495","qa","type-qa","status-publish","hentry","qa_expert-law-intern","qa_category-income-tax","qa_tag-company-converted-in-to-llp","qa_tag-conversion-of-company-into-llp"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/56495","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/qa"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=56495"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=56495"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=56495"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=56495"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=56495"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}