Conversion of closely held Private Limited company into Partnership firm

Conversion is a taxable "transfer" unless it strictly complies with the conditions of Section 47(xiiib), which allows for tax neutrality. If these conditions are breached, the conversion is subject to capital gains tax. Given the complexities and potential for retroactive tax liability, it is highly recommended to consult with a chartered accountant or tax advisor to review your specific turnover, asset values, and compliance requirements before proceeding.