I want to convert my pvt. ltd. company to LLP. As per the section 47(iii) of Income Tax Act, all the shareholders in company should become partners in LLP to avoid capital gain provisions.
Now, if a shareholder has already died and now company wants to convert into LLP, then the above mentioned condition is violated or not? One opinion is since that shareholder is died and he's not in existance any more, the said condition is automatically fulfilled even if that person isn't a partner in LLP. The other opinion is that will has to probated from the respective court and his share holding will be divided into his successors.
I want to know the exact position in this case. Please throw some light on the same.
CAclubindia
