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[Cites 0, Cited by 0] [Section 70(1)] [Section 70] [Entire Act]

Union of India - Subsection

Section 70(1)(zd) in The Income Tax Act, 2025

(zd)of a capital asset or intangible asset by a firm to a company as a result of succession of the firm by a company in the business carried on by the firm, if––
(i)all the assets and liabilities of the firm relating to the business immediately before the succession become the assets and liabilities of the company;
(ii)all the partners of the firm, immediately before the succession, become the shareholders of the company in the same proportion in which their capital accounts stood in the books of the firm on the date of the succession;
(iii)the partners of the firm do 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; and
(iv)the aggregate of the shareholding of the partners in the company is not less than 50% of the total voting power and such shareholding continues to not less than 50% for five years from the date of succession;