India - Income Tax Act 2010 - Saarc

2.17 CH. III - DIRECT TAXES - INCOME-TAX S. 18Amendment of section 44AD.15. In section 44AD of the Income-tax Act [as amended by section 20 of theFinance (No. 2) Act, 2009 (33 of 2009)], in the Explanation, in clause (b), in subclause(ii), for the words “forty lakh rupees”, the words “sixty lakh rupees” shallbe substituted with effect from the 1st day of April, 2011.Amendment of section 44BB.16. In section 44BB of the Income-tax Act, in the proviso to sub-section (1), afterthe words, figures and letter “section 44D or”, the words, figures and letters“section 44DA or” shall be inserted with effect from the 1st day of April, 2011.Amendment of section 44DA.17. In section 44DA of the Income-tax Act, in sub-section (1), after the proviso, thefollowing proviso shall be inserted with effect from the 1st day of April, 2011,namely:—“Provided further that the provisions of section 44BB shall not apply inrespect of the income referred to in this section.”.Amendment of section 47.18. In section 47 of the Income-tax Act, after clause (xiiia), the following shall beinserted with effect from the 1st day of April, 2011, namely:—‘(xiiib) any transfer of a capital asset or intangible asset by a private companyor unlisted public company (hereafter in this clause referred to as thecompany) to a limited liability partnership or any transfer of a shareor shares held in the company by a shareholder as a result ofconversion of the company into a limited liability partnership inaccordance with the provisions of section 56 or section 57 of theLimited Liability Partnership Act, 2008 (6 of 2009):Provided that—(a) all the assets and liabilities of the company immediately beforethe conversion become the assets and liabilities of the limitedliability partnership;(b) all the shareholders of the company immediately before theconversion become the partners of the limited liability partnershipand their capital contribution and profit sharing ratio in thelimited liability partnership are in the same proportion as theirshareholding in the company on the date of conversion;(c) the shareholders of the company do not receive any considerationor benefit, directly or indirectly, in any form or manner,other than by way of share in profit and capital contribution inthe limited liability partnership;(d) the aggregate of the profit sharing ratio of the shareholders ofthe company in the limited liability partnership shall not be lessthan fifty per cent at any time during the period of five yearsfrom the date of conversion;