05 January 2015
On conversion of Pvt limited company into LLP and after fulfilling of all the conditions prescribed u/s 47 (xiiib), one of which is that no amount is paid, either directly or indirectly, to any partner out of balance of accumulated profit standing in the accounts of the company on the date of conversion for a period of three years from the date of conversion, what will be taxation effect on withdrawal of accumulated profit standing on the date of conversion, on expiry of the period of three years after the conversion. i.e. whether such withdrawal will be subject to Income Tax, in the hands of partner?
CAclubindia
