Section 47(xiv) - Conversion of a Sole Proprietary Concern into a Company - Income Tax - Ready Reckoner - Income Tax

Section 47(xiv) - Conversion of a Sole Proprietary Concern into a Company Section Transaction not regarded as transfer Transferor u/s 2(47) Transferee u/s 2(47) Capital asset involved u/s 2(14) What is the cost in the hands of transferee 47(xiv) Conversion of a sole proprietary concern into a company Sole Proprietary concern Company All assets and liabilities immediately prior to conversion cost to previous sole proprietary firm NOTE:- Following conditions must be satisfied in order to be covered under this section:- All the assets and liabilities of the sole proprietary concern relating to the business immediately before the succession become the assets and liabilities of the company The shareholding of the sole proprietor in the company is not less than fifty per cent of the total voting power in the company and his shareholding continues to remain as such for a period of five years from the date of the succession and The sole proprietor does not receive any consideration or benefit, directly or indirectly, in any form or manner, other than by way of allotment of shares in the company.